A collection of individual functional budgets is known as a:
A) pro forma financial statement.
B) flexible budget.
C) static budget.
D) master budget.

Question

Quizplus · Accepted Answer

A master budget is a comprehensive financial plan that incorporates all individual functional budgets, such as sales, production, overhead, and capital expenditures. It provides an integrated view of a company's overall financial strategy and performance goals. A pro forma financial statement is a projection of future financial performance based on assumptions and estimations. A flexible budget is a budget that adjusts to changes in activity levels, while a static budget does not change regardless of actual activity levels.

A Collection of Individual Functional Budgets Is Known as A