Sohar Paper Cores LLC is a reputed pipes manufacturing unit in Oman and prepares different budgets based on their operations like Sales, Production, Purchase etc. Finally as per the management suggestions the accountant of the company prepared a summary budget, which incorporates all functional budgets, in a summarized form. This summary budget is termed as: a. None of the given options. b. Master budget c. Flexible budget d. Functional budget
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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