1. Discuss if you think ABC Manufacturing is properly using the budget process to plan for next year's expenses. Discuss the comment about the president cutting the budget each year in terms of proper leadership and control?

ABC MANUFACTURING Budgeted Income Statement // For the Year Ended Dec. 31, 20XX REVENUE: Sales COST OF GOODS SOLD: Cost of Goods Sold GROSS PROFIT % INCREASE OVER LAST YEAR 700,000 15% 420,000 20% 280,000 EXPENSES: Advertising 9,500 20% Cleaning 1,800 20% Insurance 28,000 20% Phone 3,600 20% Rent 24,000 20% Supplies 6,500 20% Taxes 10,000 20% Training/Education 9,800 100% Utilities 8,500 35% Wages 150,000 Total Expenses 251,700 NET INCOME 28,300