Which of the following is true of master budgets?
A) They include only financial aspects of a plan and exclude nonfinancial aspects.
B) Includes both financial and nonfinancial aspects of management's plans.
C) They aid in quantifying the expectations of all stakeholders.
D) They must be administered rigidly after they are committed to.

Question

Quizplus · Accepted Answer

Master budgets include both financial and nonfinancial aspects of management's plans. They are comprehensive and represent an organization's overall plan for the upcoming period. They serve as a guide to help management achieve its goals and objectives. A, C, and D are incorrect because master budgets usually include both financial and nonfinancial aspects, do aid in quantifying expectations of stakeholders, and should be flexible and updated when necessary, rather than administered rigidly.

Which of the Following Is True of Master Budgets