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1) What types of companies might have responsibility centers?A Responsibility Reporting System Involves preparation of a report for each level of responsibility in the company's organization chart. Itbegins with the lowest level of responsibility and moves upward to higher levels. This permits management by exception at each level ofresponsibility, and each higher level can obtain the detailed report for each lower level.The reports are summarized as they move up the line, until upper managers have the summary reports from the manager below them.Responsibility reporting allows for comparative evaluations. These rankings provide facts , data and incentives for managers to control costs.What are the three types of responsibility centers? What is unique about each?------------------------------------------------2) What is the difference between forecasting and budgeting? Get research paper samples and course-specific study resources under homework for you course hero writing service - Manage rs are always looking for ways to predict sales, expenses and to be prepared for anything that can affect operations. There are differenttechniques that can help with this.Financial planning models are mathematical models of the master budget that can react to any set of assumptions about sales, costs, and productmix.Budgetary analysis is more applicable for analyzing the variances between expected and actual results. Futuring is an effective technique toexamine historical events and to project future events.An important factor considered by sales forecasters is competitors activities.What else would sales forecasters be interested in?-----------------------------------------------------3)There are different types of budgets that go into the master budget. We started out by looking at the individual types-cash, travel, etc. Theseare usually easy to identify since many of experience with these. Now, these accounts will be classified into the two types- the operatingbudget and the financing budget. This is similar to making classifications for the financial statement accounts. The operating budget consistsof individual budgets that result in the preparation of the budgeted income statement , and it is used to establish goals for sales andproduction personnel.What is included in the financing budget and what statement is the information used for?-------------------------------------------------------4) Aside from the cash budget, what are some of the multitude of different budgets that comprise the Master Budget?The cash budget is similar to the statement of cash flows. It shows the beginning and ending cash balances. There are 3 sections- cashreceipts , cash disbursements, and financing. Sound familiar? it is a breakdown of where cash came in and where cash went out. The differencehere is that a budget is expected cash inflows, expected cash outflows and expected borrowing and repayments. Preparing and following a cashbudget contributes to more effective cash management. It shows managers the need for additional financing before actual need arises and itindicates when excess cash will be available.Please show a sample cash budget. Use a business that is familiar to you!-------------------------------------------------------
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