1st Wiley 6-32 document, read and answer the questions fully: a, b, c, d, e, f. For all calculation requirements show the work as to how and for all answers explain in detail why that is the correct answer.
2nd Read delectable_deliveries.pdf then complete questions 1, 2, 3, 4, 5, 6, 7. Please show how all calculations are completed, and explain fully the answers to all questions.
2. A good budgeting process has at least two distinct objectives: planning and control. Discuss the effectiveness of Delectable Deliveries, Inc.'s budgeting process in accomplishing these two goals.
3. What modifications would you make to the current budgeting process to make it more effective? What changes in the corporate culture would have to occur before these modifications could be implemented? Do you believe such changes are likely to occur?
4. Various stakeholders of the firm may have different views of the relationship among the corporate culture, the budgeting process, and the compensation system. Identify Delectable Deliveries, Inc.'s stakeholders and comment on how each would view this relationship.
5. Should Doug have made the $10,000 supplies expense accrual? What should Doug do next month when Mr. Elliot and Mr. Johnson request another accrual? Should Doug report the earnings manipulations to anyone?
6. Budgets are frequently seen as planning tools; however, they are also useful for controlling operations (comparing actual results to planned results). How well does Delectable Deliveries' budget process accomplish these two roles?
7. What recommendations do you have for improving Delectable Deliveries' budgeting process (be specific)?