Provide succinct responses to each question.
1. Outline the effect of 'perspective' on the development of a conceptual framework for financial accounting. Give an example of how a difference in perspective can inform development of accounting standards within such a framework.
2. What are discretionary expenses and why are they important to the operating success of a firm?
3. Why might a company want to engage in off-balance sheet financing?
4. What are the four options that manufacturing and service companies have to transform breakeven or loss customers into profitable ones?
5. What is budgeting and what is its role? List the purposes addressed by budgeting and the reasons why organizations prepare budgets.