Indicate whether the following aspects which need to be considered when preparing a draft budget are true or false:

1. To put a draft budget together the estimates you have made for revenue and

expenses should be entered into the budget using the software available at your place of work.

2. The policies and procedures your organisation has for budget preparation do not need to be followed for draft budget preparation - only for final budget

preparation.

3. Different businesses will have different requirements as to what can be done

and when approval needs to be sought.

4. When entering the data, you should make sure you take into account the

business's objectives for this financial year.

5. When making your estimates, you may have come up with a number of

scenarios or options.

6. While some parts of the budget can be predicted fairly accurately, some parts of budgeting like competitor activities are out of your control; to analyse the likely

impacts you could complete a "What-if analysis".