The preparation of all the budgets in the master budget forces managers to think about their business operations and to formulate plans, while:
A) detecting inaccurate historical records to avoid errors in budgets
B) setting expectations against which actual results can be compared
C) completing the budgeting tasks with minimal cross functional feedback
D) ignoring financial risks and opportunities

Question

Quizplus · Accepted Answer

Setting expectations against which actual results can be compared is a key benefit of preparing a master budget. This allows managers to track their progress and make adjustments as necessary to meet their goals. The other choices (A, C, and D) are incorrect because they do not accurately describe the benefits of preparing a master budget.

The Preparation of All the Budgets in the Master Budget