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Planning and Control

Write an essay of 1000 words demonstrating your conceptual understanding of the following questions.

1. Is budgeting used primarily for scorekeeping, attention, directing or problem solving? 2. How do strategic planning, long range planning and budgeting differ? 3. Why is budgeted performance better than past performance as a basis for judging actual results? 4. What are the major benefits of budgeting? 5. Is budgeting an unnecessary burden for day to day problems? Explain your answer. 6. Why is the sales forecast the starting point for budgeting? 7. How do Spreadsheets aid the application of sensitivity analysis?

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