The main difference in the master budget process for manufacturing, retail, and service organizations is found in the preparation of the operating budgets.

Question

Quizplus · Accepted Answer

The master budget process for all three types of organizations (manufacturing, retail, and service) includes the preparation of financial budgets (such as the cash budget, capital expenditures budget, and budgeted balance sheet), but the operating budgets (such as the sales budget, production budget, and labor budget) will differ based on the nature of each organization's business. For example, a manufacturing organization will have a production budget, while a service organization may have a staff scheduling budget.

The Main Difference in the Master Budget Process for Manufacturing