Questions 1

Imagine you are hoping to open a business - pick a business and then pick a location. In the context of chapter 7, what information would you need, how would you analyze it, and how would you make decisions. Be sure you answer the question in the context of material in chapter 7. If you use outside references, please cite them.

Prepare master budget and all supporting budgets for your business such as: sales, cash, production, materials, direct labor, manufacturing overhead, selling and administrative, cash and financial statements.

Questions 2

You have just started a new job with a mid-size company as manager of the production department. When you asked for the budget for your department you were told that the company does not have a budget but that you must get all new expenditures approved by the president. All other expenditures are based on previous purchases and needs.

Compose a short email - 5 to 7 sentences because the president it too busy to read anything longer than that - proposing a budget process for your company and more specifically for your department.