Chapter 20, Problem 14DQ

To determine

Budget:

It is an estimated financial plan for future time period. It is used by management as an internal tool. It is prepared for a defined period of time.

Master Budget:

It is a projection of income and expenses of whole organization instead of any particular division, department or product. It comprises of direct labor budget, direct material budget, manufacturing overhead budget, production budget, closing finished good budget, sales budget, selling and administration expenditure budget.

To identify: Participants in preparing master budget.