15, Mariam Jennifer Lawrence, 2103480
1.
Which budget(s) should be prepared first?
The first budget to be prepared is the sales budget. Because the production budget and all other
budgets for the firm are generated from the sales budget, it is the first budget to be produced. If sales
are predicted to be poor, the firm does not require as much inventory or salespeople, for example. If
sales are predicted to be strong, however, more of each of these resources will be needed.
2. Top-down vs bottom-up budgeting, which one you prefer?
A top-down budgeting approach is often faster than a bottom-up one, and it can also provide
organisational transparency into overall expenditures. The primary benefit of bottom-up budgeting is
that it is generally quite precise. Each department's costs, resources, expenses, and needs are best
understood by those in charge of them. It can also enhance employee morale because when
individuals are given the responsibility of setting their own budgets, they are more likely to work hard
to fulfil business objectives. Increased job satisfaction and a sense of ownership are possible
outcomes.