Question

The master budget is a.typically for a 1-year period corresponding to the fiscal year of the company. b.the selective financial plan for the organization as a whole. c.used for misinformation and coordination. d.broken down into daily and weekly budgets. e.All of these choices are correct.

Answer 1

Answer:

a) 1-year period corresponding to the fiscal year of the company.

Explanation:

The master budget is perhaps the most important planning tool that top management has at its disposal when deciding the actions of the organization.

The master budget consists of the sum of all the budgets from the different functional areas of the company (for example, the budget of the production department, plus the budget of the finance department, and so on), and also includes financial statements, and a statement of expected cash flows into the company.