Part I - Budgeting and Budget Variance Analysis (45 marks) 1. What is a budget? (1 mark) 2. Compare and contrast traditional budgeting and zero based budgeting. (2 marks) 3. Describe how budgeting relates to the planning process in an organization. Describe how budgeting relates to the control process in an organization. (2 marks) 4. Describe the Master budget and explain what the starting point is in compiling it. Select at least two supporting budgets to the Master budget and describe their purpose. (3 marks) 5. Explain the term self-imposed budget and what kinds of things might happen in an organization that does not have a participatory budget process. (3 marks) 6. What are some of the major benefits to be gained from budgeting? (Name a minimum of 3 benefits). (3 marks) 7. Describe the purpose of flexible and static budgets. (2 marks)