problem 1) Answer all the problems:

1) Describe the major characteristics of budgeting.

2) Describe the main objectives of performance budgeting.

3) Describe the difference between budget and business forecasting.

4) prepare a brief note on labour cost variance.

5) What do you mean by key factor? Give exs of some key factors.

problem 2) What do you understand by a business budget? Describe the objectives and nature of a budget.

problem 3) Discuss budgetary control. prepare down the importance and limitation of budgetary control.

problem 4) For the production of 10,000 electric automatic irons, the following are the budgeted expenses:

                                                                                                            Per unit Rs
Direct Material                                                                                                60   
Direct Labour                                                                                                 30   
Direct Expenses                                                                                              5
Variable Factory Overhead                                                                                25
Fixed Factory Overheads ( Rs. 1,50,000)                                                            15
Selling Expenses (10% fixed)                                                                             15   
Administration expenses (Rs. 50,000 fixed for all levels of production)                    5       
Distribution Expenses (20% fixed)                                                                       5
TOTAL COST                                                                                                    160

Prepare a budget for the production of 6,000, 7,000 and 8,000 irons showing distinctly the marginal cost and the total cost.