Please write a minimum of 3–5 sentences for each question. 1 – What are three purposes of budgeting? 2 – What are the purposes of a master, planned operating, and financial budget? 3 – How does the management by exception concept relate to budgeting? 4 – What are five basic principles, which, if followed, should improve the probability of preparing a meaningful budget? Why is each important? 5 – Define and explain a budget variance. 6 – What are the two major budgets in the master budget? Which should be prepared first? Why? 7 – Distinguish between a master budget and a responsibility budget. 8 – The budget established at the beginning of a given period carried an item for supplies expense in the amount of $40,000. At the end of the period, the supplies used amounted to $44,000. Can it be concluded from these data that there was an inefficient use of supplies or that care was not exercised in purchasing the supplies? 9 – Management must make certain assumptions about the business environment when preparing a budget. What areas should be considered? 10 – Why is budgeted performance better than past performance as a basis for judging actual results?