A master budget is a comprehensive financial plan for a company that includes all of its operational and financial goals. It is an aid to coordinating what needs to be done to implement a plan. It includes both financial and nonfinancial aspects, and it is subject to change if circumstances change. The budget constraints are within the management's control. However, it does include broad expectations and visionary results.

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A Master Budget

Question 4

Multiple Choice

A master budget

A) includes only financial aspects of a plan and excludes nonfinancial aspects.
B) is an aid to coordinating what needs to be done to implement a plan.
C) includes broad expectations and visionary results.
D) should not be altered after it has been agreed upon.
E) is based upon budget constraints outside of management control.

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