The master budget is composed of operating budgets and financial budgets.

Question

Quizplus · Accepted Answer

The master budget is indeed composed of operating budgets and financial budgets. The operating budgets include budgets for sales, production, direct materials, direct labor, and manufacturing overhead, while the financial budgets include budgets for cash, capital expenditures, and budgets for income statements, balance sheets, and cash flow statements.

The Master Budget Is Composed of Operating Budgets and Financial