ANSWER BRIEFLY:

1. Explain how budgets facilitate planning and coordination.

2. Anticipate possible human relations problems caused by budgets

3. Explain potentially dysfunctional incentives in the budget process.

4. Explain the difficulties of sales forecasting.

5. Explain the major features and advantages of a master budget.

6. What are the steps in preparing a master budget?

7. How do you prepare the operating budget and the supporting schedules?

8. How do you prepare the financial budget?