The ____________ budget is a major part of the master budget and focuses on the income statement and its supporting schedules.

Question

Quizplus · Accepted Answer

The operating budget is the part of the master budget that focuses on the income statement and supporting schedules such as sales, production, direct materials, direct labor, and overhead expenses. It is an important budget as it helps in planning and controlling the day-to-day operations of the business. The cash budget, on the other hand, deals with the cash inflows and outflows of the company, while the capital expenditure budget focuses on the long-term investments and financing needed for the growth of the company. The financial budget is an overarching budget that includes all aspects of the company's finances, including the operating, cash, and capital expenditure budgets.

The ____________ Budget Is a Major Part of the Master