Sigma PLC are a Certified Chartered Management Accountant firm. The firm has a number of clients who regularly require support concerning monthly and quarterly management accounting issues. The key issue that has been raised by a major client, Barry Prior PLC is around the scope, purpose and procedures involved in the annual budgeting process. To assist with the clients query, the Accounting firm has been asked by the Senior Partner to prepare a report to highlight the key characteristics of budgeting. REQUIREMENT: Prepare a report that: 1. Describes the SIX main purposes of budgeting. (6 marks) 2. Explains the difference between fixed and flexible budgets. (4 marks) 3. Briefly outlines the functional budgets that may be prepared as part of the budgeting process. (5 marks) 4. Describes TWO behavioural issues that may arise from the budgeting process