Complete the questions below before attending your class. You are expected to be prepared to discuss these questions as soon as your class begins. You should note any areas of confusion or difficulty for further discussion during your class. The questions are derived from Topic Notes therefore discussions should be within that context.

Use examples to explain your answers.

1. What is a budget? Why is budgeting important?

2. What is a variance? How can variances be used in evaluating the perfomance of an organisation? Use examples to explain your answer.

3. What is a sales budget? Explain two factors that need to be considered when forecasting sales.