QUESTION 4 The budget preparation procedure O Is the sole re

QUESTION 4 The budget preparation procedure O Is the sole responsibility of the controller Depends on the size & nature of the establishment Starts from the top down Commences after the period concerned has started QUESTION5

Solution

Answer: Depends on the size and nature of the establishment.

The budget preparation procedure would be different for a sole proprietorship as compared to a large company with several departments and hence is dependent on the size and nature of the business. Departments such as marketing, sales, production, etc. are also involved in the budget preparation activity and it is not the sole responsibility of the controller. Budgets may be prepared using either the top-down or the bottom-up approach. Budgets are prepared prior to the commencement of the concerned period to which they pertain.