Question

Sales budget is a __________.

• A. Functional budget
• B. Master budget
• C. Expenditure budget
• D. Flexible budget

Answer 1

The correct option is A Functional budget

The cost and income plan created for a particular department operating within the business is called functional budget. Functional budget are prepared for each of the function like sales budget, purchase budget, raw material budget etc.

Master budget is prepared by aggregating the summary of all functional budget.