Question

The Master Budget is

	a.	the selective financial plan for the organization as a whole.
	b.	typically for a 1-year period corresponding to the fiscal year of the company.
	c.	broken down into daily and weekly budgets.
	d.	used for misinformation and coordination.
	e.	all of these.

Answer 1

The correct answer is d) all of these.

Supporting explanations:

Master budget is an overall budget that estimates the expected results to achieve in future period of sales, production, direct materials, direct labor, factory overheads etc. by preparing a separate budget and the combination of all of such budgets is called the master budget.

This master budget generally prepares for one year with a comparison with previous years. It can also been seen in daily and weekly or monthly budgets.

It is helpful when the information is missed or lost.

Therefore, all of the given options are correct.