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Question
Why is a Master Budget also known as a Summary Budget?
Solution
The master budget is a summary of all budgets. Therefore, it is also known as a summary budget. The Institute of Cost Management Accountants, England, has defined it as "the summary budget, incorporating its component functional budgets, which is finally approved, adopted and employed." Thus, the master budget is a summarised form of all the budgets of a firm. This budget requires the approval of the Budget Committee before it is put into operation.
RELATED QUESTIONS
Which of the following is not the part of master budget?
Which budget is also known as summary budget?
Production budget is dependent on ______.
Sales budget shows the sales details as ______.
This budget is a summary statement of the firm's expected inflows and outflows of cash over a future time period.
A cash budget is helpful in ______.
Explain 'sale budget'.
Distinguish between a Production Budget and a Sales Budget.
Explain the main types of budgets used in business enterprises.
What are the factors to considered while preparing sales budget.
