Question

Within the master budget of the organization, what was your role and responsibilities

Answer 1

A master budget may be defined as a set of interconnected budgets like sales, purchases, expenses, income etc.All the components of master budget are interconnected and therefore flow of one component to another one takes place.

Roles and responsibilities that lie within the master budget are as follows:-

1. It sets the timelimit within which work is to be complete and therefore apart from working on current activities it is the responsibility to complete the budget within the defined time frame.

2.It helps in achieving the uniform goals and objectives and therefore it is the responsibility to understand and work towards a common goal.

3. Responsibilities lies in the sense that coordination is demanded. Therefore completion is expected only when coordination between departments exist.

4.Controlling also plays an important role in the achievement of budgets. Thus controlling and responsibility go together.

5.It is the responsibility to prepare difference functional budgets which act as a supporting to master budget.