Management will use the budget to accomplish management responsibilities and may use several types of budget reports to that end.
1. What is the purpose of preparing a periodic report at regular intervals? How should management use the information contained in periodic budget reports? Got example?
2. Why would an advance report be prepared and how does an advance report relate to a periodic report? Can you provide a simple example of an event that would justify the preparation of an advance report?
3. In budgeting, what is a special report? Could this relate somehow to budget control or actual/budget variances? If you are in charge of this budget area, can you offer an example of an event or situation where you would require the creation of a special report?