Review questions

$10\mathrm{.}1$ Define a budget.

$10\mathrm{.}2$ Describe the purpose of budgeting.

$10\mathrm{.}3$ Explain how a budget can be used for performance evaluation as well as to provide incentives.

$10\mathrm{.}4$ Describe the functions of the budget committee.

$10\mathrm{.}5$ What do you understand by the term 'management by exception'?

$10\mathrm{.}6$ Explain what responsibility accounting is$.$

$10\mathrm{.}7$ Why is participative budgeting regarded as an effective management tool?

$10\mathrm{.}8$ Describe the budget process.

$10\mathrm{.}9$ Why is the sales budget one of the most important budgets?

$10\mathrm{.}10$ What is a master budget?

$10\mathrm{.}11$ What purpose does a cash budget serve?

$10\mathrm{.}12$ How does zero$-$based budgeting differ from traditional budgeting?

$10\mathrm{.}13$ Describe the different stages in implementing zero$-$based budgeting.