Which of the following statements correctly describes rela-tionships within the master budget? (More than one answer may be correct.)a. The production budgets are based in large part on thesales forecast.b. In many elements of the master budget, the amountsbudgeted for the upcoming quarter are reviewed andsubdivided into monthly budget figures. c. The operating budgets affect the budgeted income state-ment, the cash budget, and the budgeted balance sheet. d. The capital expenditures budget affects the direct mate-rials budget.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Which of the following statements correctly describes rela-
tionships within the
may be correct.)
a. The production budgets are based in large part on the
sales forecast.
b. In many elements of the master budget, the amounts
budgeted for the upcoming quarter are reviewed and
subdivided into monthly budget figures.
c. The operating budgets affect the budgeted income state-
ment, the
d. The capital expenditures budget affects the direct mate-
rials budget.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
