The final step in constructing the master budget is the preparation of pro-forma financial statements for the period.

Question

Quizplus · Accepted Answer

This is true. Once all the individual budgets (sales, production, direct materials, direct labor, manufacturing overhead, selling and administrative, and cash) have been combined, the final step is to prepare pro-forma financial statements such as an income statement, balance sheet, and cash flow statement for the period covered by the budget.

The Final Step in Constructing the Master Budget Is the Preparation