The master budget consists of a number of separate but interdependent budgets.

Question

Quizplus · Accepted Answer

The master budget is comprised of individual budgets such as the sales budget, production budget, direct materials budget, direct labor budget, overhead budget, selling and administrative budget, and the cash budget. These budgets are interdependent as they are linked to one another and are created based on assumptions from previous budgets.

The Master Budget Consists of a Number of Separate but Interdependent