Question

__________ is a summary of all functional budgets in a capsule form.

• A. Cash budget
• B. Flexible budget
• C. Master budget
• D. Production budget

Answer 1

The correct option is C Master budget

Budget prepared for each of the function is called as functional budget. These may be sales budget, Raw Material budget, expense budget, cash budget etc.

A master budget is an aggregation of all lower level budget produced by the company for all functional areas. It includes summary of all budget and produce in a consolidated form.