Components of a Master Budget

Please answer the questions below completely and explain your answers.

1. Explain the components of a master budget and examine how managers use a master budget in decision making.
2. Explain and examine the process of preparing one of the following budgets: (a) production budget; (b) direct materials budget; or (c) direct labor budget.
3. Compare and contrast between a flexible budget and a static planning budget.
4. Distinguish between revenue variance and spending variance.  Give examples of each variance.

PART TWO

Topic:

1. “The market for t-shirts is perfectly competitive.”  Do you think this statement is true or false?
2. Justify your answer using the basic characteristics of perfect competition (number of sellers, type of product, and barriers to entry).
3. Reply to 2 other students