Read each question carefully. Follow the suggested word count when you answer each question. 1. Budgeting Principles Summarise the principles and practices that need to be considered when preparing a budget. In your response refer to the budgets that are prepared in a manufacturing environment, such as a factory overhead budget. Your response should be approximately 100 - 150 words.

2. Variance Analysis and costing system integrity Analyse the relationship between variance analysis and costing system integrity. Your answer should be between 200-250 words. In your response. outline the implications for lack of integrity in a costing system; and the strategies to ensure the accuracy and reliability of outputs from a costing system.