In answering the following questions, please use short answers. ACCT 2014 - MANAGEMENT ACCOUNTING II

1. Budgeting is part of a bigger picture. a) What is that bigger picture? b) Why is budgeting necessary? c) List some of the dangers of failing to budget
2. a) Why are standards necessary? b) What are the dangers of standards that are too difficult ? c) What are the dangers of standards that are too easy to attain?
3. Outline what must be done after variances have been identified? Be specific.