1. Many people look at the budgetary process with much the word budget with fear and dread. Often you will see the accounting department with scowls on their faces and signs up that say...Enter at Your Own Risk. Would a magic wand make the process better if we changed the name to something else like a financial road map or guide to success? Many people often question why a budget is needed. In your own words, explain why budgets are a needed part of a business? What areas of the budgetary process are an integral part of the business?
2. What is the difference between a static vs flexible budget? Explain.
3. What are standard costs and how do they affect your budget? What decisions can be made with standard costs?
4. There is often a lot of confusion regarding variable, fixed and mixed costs. What are each of these financial elements and what is their impact on reporting to management? Provide an example of each type of cost and how that cost can affect a report if recorded incorrectly.
**Each question response needs to be at least 250 words