1. Why is effective budgeting critical to a company’s success?

2. What is a flexible budget?

3. What types of organizations might use flexible budgets?

4. Why are flexible budgets useful?

5. What is a balanced scorecard?

6. What are variances and why do these occur?

7. What factors would you consider when deciding whether to investigate a variance?

8. Why is it important for management to understand how a budget is prepared?