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

Question

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Manufacturing organizations will have operating budgets for production, direct materials, and labor costs, while retail organizations will have operating budgets for sales, inventory, and operating expenses. Service organizations will have operating budgets for labor costs, marketing, and administrative expenses, as they do not have production or inventory costs. Therefore, the operating budgets will differ based on the type of organization.

The Main Difference in the Master Budget Process for Manufacturing,retail,and