introduces the topic of budgets. Budgets are a primary financial planning tool used by businesses and other organizations. The chapter explains how businesses use and prepare budgets as part of the management process. The concept of responsibility centers and responsibility accounting is also discussed and are related to the concept of controllability. In addition, the human factor in budgeting is covered. The cash budget is presented in the Appendix.

Begin by including the name of your business. Provide details on how a budget would benefit your operations and management process. Include the names of two or three responsibility centers in your growing business. Post brief responses to each of the requirements in Problem 6-46(Budgeting and Ethics). Identify two budget input standards(for example your specific direct material standard amount) that you use in your business . Discuss why you decided on these two standards and how you came up with the numbers. How do you make sure these standards align with your business goals?