question 1:

1. Explain what a master budget is, and list five of its parts.
2. Explain what are the limitations of a budget,
3. Distinguish between operating decisions and strategic decisions.
4. All future costs are relevant costs. Do you agree? Explain.

question2

1. What is a standard cost? What are the benefits and limitations of standard cost?
2. What are the methods for establishing standards?

question 3:

1. What is a Flexible Budget? How it is different from Static Budget?
2. What is the difference between Expected Capacity and Normal Capacity?
3. Write down the formulae to calculate Budget Variance and Capacity Variance.