1. What is a budget? What is budgetary control?
2. What is a bottleneck?
3. What is meant by the term responsibility accounting?
4. What is a master budget? Briefly describe its contents.
5. Why is the sales forecast the starting point in budgeting?
6. What is a budget committee? Why is it used by some companies?
7. What is a perpetual budget?
8. What is a participative budget? What are the major advantages of participative budgets?
9. What is budget slack? Why might managers be tempted to build slack into their budgets?
10. What is a stretch budget? What is a challenging but attainable budget?
11. What is the sales budget and why is so important in the budgeting process?
12. Which budget schedule replaces the production budget for merchandising companies?
13. Describe the difference between a static budget and a flexible budget.
14. What is a sales volume variance?