Chapter 9, Problem 9.1DI

Use this list of terms to complete the sentences that follow.

Long-range plans	Participative budgeting
Sales forecast	Operating budgets
Master budget	Financial budgets

1. _____ establish goals for the company’s sales and production personnel.

2. The _____ is a set of interrelated budgets that constitutes a plan of action for a specified time period.

3. _____ reduces the risk of having unrealistic budgets.

4. _____ include the cash budget and the budgeted balance sheet.

5. The budget is formed within the framework of a _____.

6. _____ contain considerably less detail than budgets.