Which of the following statements is true regarding the master budget?
A)The master budget is a blueprint of the planned operations of a firm for a period.
B)The master budget begins with the production budget.
C)The master budget does not require a sales forecast.
D)all of the above.

Question

Quizplus · Accepted Answer

The master budget is a comprehensive financial plan that outlines the overall operation of the company for the upcoming period. It includes various budgets such as production, sales, operating expenses, and capital expenditures. It serves as a blueprint that guides the company's decision-making process and helps it to achieve its strategic goals. B and C are false statements as the production budget is just one component of the master budget, and a sales forecast is necessary to prepare the master budget accurately.

Which of the Following Statements Is True Regarding the Master