A collection of smaller budgets that leads to pro-forma financial statements is referred to as the
A)Master budget.
B)Summary budget.
C)Overall budget.
D)Pro-forma budget.

Question

Quizplus · Accepted Answer

A collection of smaller budgets that leads to pro-forma financial statements is referred to as the Master budget. The Master budget includes budgets for sales, production, direct materials, direct labor, manufacturing overhead, selling and administrative expenses, and capital expenditures. It represents the company's overall financial plan for the budget period and serves as a framework for decision-making and performance evaluation.

A Collection of Smaller Budgets That Leads to Pro-Forma Financial