What is a Master Budget?

Master Budget
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Master Budget
A master budget is a total of all smaller budgets for a company that is used to record and document the expenses and income of a company. A master budget can be presented in a monthly or quarterly plan and is usually intended to cover the whole fiscal year for the company (Samuels & Sawers, 2017). Brief text can be incorporated within the master budget to show the company's strategic position in terms of ways of meeting specific goals and actions that the manager needs to put into place to achieve the budget. The changes that may be necessary to bring forth headcount changes essential to meet the budget may also be included in the brief explanatory text.
The primary components of a master budget include expenses and income, production costs, and the monthly, annual, average, and projection totals. These components are distributed in smaller budgets with the sales budget, the production budget, the direct labor, direct materials budgets, and the administrative expense budget (Setiyaningsih et al., 2021).
Budgeti...