 In this presentation, we will take a look at multiple choice questions related to budgeting, going through the question, and then practicing test-taking skills with them. First question. The normal budget period is a, 260 working days, b, monthly period broken out into daily budgets, c, a quarterly period broken out into weekly budgets, d, an annual period broken out into weekly budgets, and e, an annual period broken out into quarterly and monthly budgets. First, a word from our sponsor. Yeah, actually, we're sponsoring ourselves on this one, because apparently the merchandisers, they don't want to be seen with us, but, but that's okay, whatever, because our merchandise is, is better than their stupid stuff anyways. Like this CPA thinking cap, for example, CPA thinking, CAP, you see what we did with like with the letters, and this CPA thinking cap is not just for CPAs either. Anyone can and should have at least one possibly multiple CPA thinking caps. Why? 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I think they got that number actually by saying if there were five work days times 52 weeks, that would be the 260. But that seems still doesn't seem normal. And then B says monthly period broken out into daily budgets. So a monthly period of monthly, I'll keep it for now. C says a quarterly period broken out into weekly budgets. Again, you can quarterly D says an annual budget on an annual period broken out into weekly periods. So annual is what I would kind of expect. I would think annual. So I'll keep that for now. And then E says an annual period broken out into quarterly and monthly budgets. And that's the one that seems most normal, because it's you've got an annual period, which seems like what it would be. And then it broke it out into the next component, which would be quarters into force. That seems normal. And then monthly period. So I would think of all these. E seems the most reasonable if I go back through this. I don't think it's because you're not going to make a monthly budget. Each month, we're probably going to make a yearly budget. We're probably not going to make a quarterly budget. We're going to make a yearly budget. We're not going to make an annual budget and then break it out into weeks without first breaking it out into quarters. And then months, we don't make an annual budget and then break it out into 52 weeks. Typically, we usually make an annual budget, break it out into quarterlies, and then break it out into months. So I think the final answer then will be E. So the normal budgeting period is E, an annual period broken out into quarterly and monthly budgets. Next question, which should be initially responsible for developing sales estimates? A, the budget committee, B, the CEO, C, the CFO, D, the sales department, and E, the marketing department. Let's go through this again using the process of elimination, which should be initially responsible for developing sales estimates, either A, the budget committee, B, the CEO. So you would think again that the budget committee, that's kind of who we're dealing with here. So I'll keep that for now. B says the CEO, and C says the CFO, the kind of big people in the organization, the top down type of approach. So I'll keep them. D says the sales department. Now we're dealing with sales estimates. So you would think they would be involved. And then E says the marketing department. And the marketing department is probably not going to be the one making the sales decision. They're the ones that are going to, you know, the sales department is probably going to be working with to help drive up the sales, but it's not going to be the marketing department. So let's go through this again, which should be initially responsible for developing the sales estimates. Now notice that if we talk about the CFO, the CEO, and possibly even the budget committee, if they were initially involved, we would have a top down type of approach, meaning the big guys are going in and making the ultimate decision right off the bat. And what you want is to have the bottom up approach. Typically that's what we're promoting here in a larger kind of business, because who's the one that's going to be able to make the best first estimate, not the person that's 10 steps removed from the actual selling process, but the people in the sales department. The people in the sales department should have a good idea of what sales will be. So you want to talk to them first and then put those numbers together and then have the bottom up type of approach. Again, in a small company, you might say, this is crazy. In a small company, you got one person and they make the many of the decisions and whatnot. The company gets larger, you got to decentralize the CEO and the CFO 10 steps removed possibly from the day to day on the ground sales department in different areas. And therefore you got to go to those departments to get the projections that you would think would have the most accurate projections and then take it from the bottom up. So we would say final answer D, which should be initially responsible for developing sales estimates D, the sales department.