List the features and advantages of a master budget. Also, distinguish between the components of master budget.
List the features and advantages of a master budget. Also, distinguish between the components of master budget
Budgeting is one of the tools of the management control. Internal control programs are critical to any organization, because without it the results could be chaotic.
Master Budget is a summary of a company's plans in which specific targets are set for sales, production, distribution, and financing activities and that generally culminates in a cash budget, budgeted income statement, and budgeted balance sheet.
Features of Budgeting
The "master" budget is an essential part of the coordinating effort. Such budgets consist of many individual building blocks that are tied together in logical harmony, and reflect the financial plan for the entire organization. Careful articulation is essential.
The starting point for the master budget is an assessment of anticipated sales via the sales budget. The expected sales level drives both the production plans and the selling, general, and ...
This discusses the features and advantages of a master budget