Which of the following statements relating to a master budget is incorrect?
A) It is a set of interrelated budgets.
B) It is normally overseen by a budget committee.
C) Budget targets are fixed and not subject to revision.
D) It is typically prepared for a one-year period that coincides with the entity's financial year.

Question

Quizplus · Accepted Answer

The statement that budget targets are fixed and not subject to revision is incorrect. A master budget is a flexible document that can be revised throughout the year as circumstances change.

Which of the Following Statements Relating to a Master Budget