 In this presentation we will discuss budget problems or potential pitfalls within the budgeting process that we want to be aware of that we want to avoid. One problem with the budget is that there is an inherent incentive within the budgeting process often to try to understate the sales that will be budgeted for and overstate the expenses. Why? Because that will make it easier to hit the target. So if you're imagining the budget budgeting process as the management, the upper management is there to of course approve the budgeting process, communicate the process of making the budget and then we've got the managing department managers of each department and supervisors of each section of the company then coming up with the budgets for their particular department, their particular segment of the company. Those department managers have an incentive you would think to do things like understate the sales and overstate the expenses because if they do so on the budget