2. Define what is meant by a budget and a master budget.
3. List and describe the three major objectives of budgeting?
4. Describe the process referred to as continuous budgeting.
5. Put the following budgets in order, and provide an explanation as to why they should be prepared in that order:  Budgeted Income Statement, Sales Budget, Production Budget
6. Briefly describe the type of human behavior problems that might arise of budget goals are set too tightly.
7. What behavioral problems are associated with setting a budget too loosely?
8. What behavioral problems are associated with establishing conflicting goals within the budget?
9. Describe what is meant by a static budget.  Under what circumstances is a static budget appropriate?
10. How do computerized budgeting systems aid firms in the budgeting process?
11. Why should the production requirements set forth in the production budget be carefully coordinated with the sales budget?
12. Why should the timing of direct materials purchases be closely coordinated with the production budget?
13. Discuss the purpose and structure of the cash budget.  What is the bottom line of the cash budget?  Explain.
14. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
15. Give an example of how the capital expenditures budget affects other operating budgets.
16. What information, if any, will be shown on the budgeted income statement, from the following:  sales budget, cash budget, and cost of goods sold budget?
17. What information, if any, will be shown on the budgeted balance sheet, from the following:  sales budget, cash budget, and cost of goods sold budget?
18. Place the following budgets in their proper order of preparing the master budget:  Cost of goods sold budget, production budget, direct materials purchases budget, selling and administrative expenses budget, direct labor cost budget, budgeted income statement, sales budget, and factory overhead cost budget.
19. Prepare a description of what is meant by a responsibility center.  What would be a responsibility center for city government? Why.
20. Describe what is meant by zero-based budgeting.  Do you think this would be a good method of budgeting for the federal government?  Why.
21. How does a flexible budget compare to a static budget?
22. Why would a flexible budget be more accurate and useful in the budget process?
23. Describe the process of preparing the sales budget.
24. Describe the process of preparing the production budget.
25. The cost of goods sold budget is related to three other budgets - identify and explain those budgets.
26. When preparing the cash budget, it is necessary to prepare related budgets related to cash receipts and cash payments.  Describe how to prepare the schedule of collections from sales.
    1. Describe what is meant by a capita?

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1 Budget and Master Budget Budget A budget is a financial plan that outlines the expected revenues expenses and financial outcomes for a specific period often one year It serves as a roadmap for alloc... View the full answer