Question

Sara auditioned for a part in Ben Affleck's "The Accountant." During the audition, the producer asked Sara the following question. "Firms have many detailed budgets. These budgets include, but are not limited to, sales, inventory purchases, cash collections. What do you call all of these budgets when aggregated?" Help Sara by choosing the best answer below:

Multiple Choice

• master budget.

• current budget.

• grand plan.

• strategic plan.

Answer 1

Answer : Option "A"

A master budget is an expensive business strategy that documents expected future sales, productions levels, purchases, future expenses incurred, capital investments, and even loads to be acquired and repaid. In other words, the master budget includes all other financial budgets as wells as a budgeted income statement and balance sheet.

The master budget include:

• Direct labor budget

• Direct materials budget

• Ending finished goods budget

• Manufacturing overhead budget

• Production budget

• Sales budget

• Selling and administrative expense budget