- How and why are budgets used? - Self-Imposed or Participative budgeting? - What are the advantages and disadvantages? - What is the master budget, the budgets included in it, and the order of its preparation? - Know the order or preparation, how to prepare, and the purpose for, each of the following budgets: - Sales budget, production budget, direct materials purchases budget, direct labor budget, manufacturing overhead budget, inventory purchases budget, selling & administrative expenses budget, budgeted income statement, capital expenditures (do not have to prepare), cash collections budget, cash payments budget, combined cash budget, budgeted balance sheet. - Which items would not be found on a combined cash budget