The master budget is commonly classified into:

Question

Quizplus · Accepted Answer

The master budget is commonly divided into two sections: the operating budgets and the financial budgets. The operating budgets include sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, and the selling and administrative expense budget. The financial budgets include cash budget, budgeted income statement, and budgeted balance sheet. Therefore, Option A is the correct answer. Option B is incorrect because it only includes the sales budget and operating expenses budget, which are part of the operating budgets. Option C is incorrect because it only includes the sales budget, operating expenses budget, and cash budget, which are part of both operating and financial budgets. Option D is incorrect because it only includes the budgeted general purpose financial statements, cash budget, and capital expenditure budget, which are only part of the financial budgets.

The Master Budget Is Commonly Classified Into