Sara Hall is the production manager of a specialty toy manufacturer. The business has grown significantly over the past several years. As the company grows, Sara has found it more difficult to manage all the various activities of purchasing, production and quality control. In addition, the accounting department requires more and more feedback each month as costs rise in the growing business. Hall attended a manufacturing conference where she heard about budgeting. The toy manufacturer does not have a formal budgeting process and Sara thinks it might help the growing business. Hall is not an accountant but is putting together a report to discuss the topic of budgeting with accounting. Hall has done some studies on the current production processes. She has found that the company can produce a maximum number of toys each month, but never actually reaches that level of production. One of the areas that has become a significant issue in the growing business is stock-outs. Although Hall has been increasing the number of units produced each month, the toy manufacturer's sales department complains that they run out of toys at the beginning of each month. The sales department has provided the following projections for sales over the next quarter. Anticipated toy sales in units October 10,000 November 12,000 December 15,000 Hall has determined that the production should reach a level so that there will be an ending inventory equal to 30% of the next month's sales. Required: 1. Identify and explain four characteristics that could make this company's budgeting process successful. 2. Describe how this business should differentiate between ideal standards and currently attainable standards