Review the River Beverages case starting.

DEVELOPING A BUDGET: THE RIVER BEVERAGES CASE 9
Overview
River Beverages is a food and soft drink company with worldwide operations. The company is organized into five regional divisions with each vice-president reporting directly to the CEO, M. P. Whelan-Mille. Each vice-president has a strategic research team, a controller, and three divisions—Carbonated Drinks, Non-carbonated Drinks, and Food Products (see Exhibit 9.9).
Industry
The beverage industry in the United States has become mature as it has grown in stride with population growth. Most of the industry growth has come from the nonalcoholic beverage market, which is growing by about 1.1 percent annually. In the nonalcoholic arena, soft drinks are the largest segment. Bottled water is the next largest segment, followed by juices. The smallest but fastest growing segment is ready-to-drink tea, which is growing rapidly in volume but accounts for a small percent of the beverages consumed.(..)

Required
a. Critique the budgeting process at River Beverages. Begin with the division manager’s initial reports, and end with the board of directors’ approval. Evaluate the reasons why the company does each of the activities in the budgeting process.
b. Should the plants be set up as profit centers or as cost centers?