The process of developing a master budget differs among manufacturing,retail,and service organizations in terms of preparation of
A)cash budget.
B)capital expenditures budget.
C)income statement.
D)operating budgets.

Question

Quizplus · Accepted Answer

The process of developing a master budget involves preparation of various budgets, including operating budgets such as sales, production, and expenses. This process differs among manufacturing, retail, and service organizations in terms of the specific items included in these operating budgets. For example, a manufacturing company may need to prepare a production budget that outlines the number of units to be produced, while a service organization may need to prepare a labor budget that outlines the number of hours worked by employees. However, all three types of organizations would typically prepare a cash budget and a capital expenditures budget as part of the master budget process. The income statement would be a result of the master budget process, rather than a specific budget prepared during this process.

The Process of Developing a Master Budget Differs Among Manufacturing,retail,and