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6. What role does the budgeting activity play in managerial compensation and performance evaluation? 7....

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Accounting

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6. What role does the budgeting activity play in managerial compensation and performance evaluation? 7. Which of the following questions are appropriate to address during the financial planning process? Justify your answer with logical arguments. 1. Should the firm merge with a competitor? II. Should additionally shares of stock be sold? III. Should a particular division be sold? IV. Should a new product be introduced? 8. How does the net present value (NPV) decision rule relate to the primary goal of financial management, which is creating wealth for shareholders? 9. Why will there frequently be a difference between the budgeted cost of material in the material purchases budget and the budgeted cash disbursement for material in the cash budget

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