Which of the following statements is true? 1. The master budget consists of a number of separate but interdependent budgets. II. The production budget is typically prepared before the direct materials budget. III. The selling and administrative budget is typically prepared before the cash budget. Multiple Choice O Only statement III is true. Only statement II is true. All of the statements are true. None of the statements are true.
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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