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Part $1$

What are the four elements of the budgeting$$ cycle?

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Part $1$

A$.$

Preparing the supporting schedules of the operating budget

Preparing the budgeted income statement

Preparing the budgeted balance sheet

Preparing the cash budget

B$.$

Planning the performance of the organization as a whole as well as of its subunits with the entire management team agreeing as to what is expected

Providing a frame of$$ reference, a set of specific expectations against which the actual results can be compared

Investigating variations from the plans. If$$ necessary, corrective action follows investigation.

Planning$$ again, considering feedback and changed conditions

C$.$

Coordination among subunits within the company

Promotion of communication among subunits within the company

Providing a framework for judging performance and facilitating learning

Motivating managers and other employees

D$.$

Identifying the problem and uncertainties

Obtaining information

Making predictions about the future

Evaluating performance and learning