Problem 1. According to information posted by the Oregon Society of Certified Public Accountants, the current trend for businesses in relation to budgeting is changing a direction to "flexible budget tools." The information posted also indicates that "more companies are abandoning budgets in favor of rolling forecasts." In essence most companies disclose they budget, but implement the budget tools of rolling forecasts, flexible budgets, and event-driven planning to carry-out budgetary processes. Does anyone agree with this?
https://secure.orcpa.org/about/news/5/999-companies_turn_to_flexible_budget_tools
Problem 2. The master budget is a detailed and comprehensive analysis of an organization's long- and short-term goals. Identify the major inputs to the master budget and the usefulness of each. Additionally, why would a company need to create a master budget? What are the advantages and disadvantages?