Answer the following questions. Support your answers with references, examples, etc.
1. What are the advantages of top-down budgeting? Of bottom-up budgeting? What is the most important task for top management to do in bottom-up budgeting?
2. In preparing a budget, what indirect costs should be considered?
3. What is a variance?
4. What is “program budgeting”?
5. What is the difference between project- and category-oriented budgets?
6. How does a risk analysis operate? How does a manager interpret the results?
7. Describe how a risk matrix is constructed.
8. How would a decision tree be useful for a project manager?
9. How far should the cause-effect diagram be broken down into subfactors?
10. Contrast the risk responses for threats and opportunities.