/ To introduce the process of budgeting (profit planning) To understand WHAT a budget is, WHO engages in budgeting, WHEN budgets are prepared and WHY organizations do this To understand the benefits and draw backs of different types of budgets / To introduce certain critical part of the master and operating budget which most likely give trouble to introductory students 1. What is a budget? 2. Why do organizations engage in the budgeting process? What are the benefits? Any disadvantages? 3. By whom is a budget prepared? 4. When are budgets prepared? 5. What is the "Operating Budget"? What are the basic parts of an operating budget? 6. What is the "Financial Budget"? What's in that? 7. What is a master budget? What does that include? 8. What's "participative budgeting" or "bottom up budgeting? Do you think that this is desirable? What advantages does it have? Any disadvantages? What's the alternative to this? 9. Which is the first budget prepared and why? 10. Let's say that, based on your marketing projections, industry and economic forecasts, you estimate that you will sell 10,000 chairs in the next month. Your sales price is $100 per chair. What's your sales budget? 11. If you expected no beginning or ending inventories, how many chairs would you plan to produce