A master budget is ________.
A) a budget which starts from a zero base
B) based on the level of expected output at the start of the budget period
C) developed at the end of a period
D) a type of flexible budget once actual results are known

Question

Quizplus · Accepted Answer

A master budget is usually based on the level of expected output at the start of the budget period. It is a comprehensive financial plan that includes individual budgets for different areas such as sales, production, marketing, and administration, which are integrated to form a complete plan for the organization's financial activities for the budget period. A master budget is usually developed before the start of the budget period and is used as a guideline for actual performance throughout the period.

A Master Budget Is ________