1. What is a budget? (10 points)
2. What are the (six) benefits of having a budget? (10 points)
3. What is a master budget? Describe its components. (15 points)
4. What is a static planning budget? (10 points)
5. What is a flexible budget? (10 points)
6. How does a flexible budget differ from a static planning budget? (15 points)
7. What are three reasons that actual results may differ from what had been budgeted for at the beginning of a period? (15 points)
8. How does a flexible budget account for these variances? (15 points)