Which of the following is characteristic of the master budget?

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The master budget is a comprehensive financial plan that outlines an organization's overall financial goals, objectives and strategies for achieving those goals over a specific period, usually a fiscal year. It typically includes projections for sales, expenses, capital expenditures, and cash flows for the entire year. One characteristic of the master budget is that it can reflect seasonal effects, which means that it can take into account the impact of seasonal variations on sales and expenses and adjust the budget accordingly to account for these changes. This allows the organization to anticipate and prepare for fluctuations in demand, and adjust its operations accordingly. A is incorrect because monthly budgets may not be evenly divided by 12 due to seasonal fluctuations. B and C are incorrect because fixed and variable costs can change depending on changes in production levels, resource prices, and other factors.

Which of the Following Is Characteristic of the Master Budget