The main difference in the master budget process for the three types of organizations involves the preparation of the
A) cash budget.
B) capital expenditures budget.
C) financial budgets.
D) operating budgets.

Question

Quizplus · Accepted Answer

The main difference in the master budget process for the three types of organizations (service, merchandising, and manufacturing) involves the preparation of the operating budgets. This is because each type of organization has different cost structures, revenue streams, and production processes, which affect the way they prepare their operating budgets. While all organizations will also prepare financial budgets and cash budgets, the operating budgets will differ significantly. Additionally, capital expenditures budgets may also vary depending on the nature of the organization's business.

The Main Difference in the Master Budget Process for the Three