Question 1: After a master budget has been prepared, what is its role in managerial control?
Question 2: Differentiate between the operating and financial budgets that are contained in a master budget. Why are both types needed?
Question 3: Discuss the sequence in which major components of the master budget are prepared. Why is it necessary to prepare the components in such a sequence?
Question 4: The cash budget and the budgeted statement of cash flows both provide information about cash. What information about cash is common to these two sources, and what information is unique to these two sources?
Question 5: Why is continuous (rolling) budgeting becoming more popular than it was in the past for organizational managers?