The master budget is comprised of which two classes of budgets?
Explanation
The master budget is a comprehensive plan of action that is broken down into two main categories: operating budgets (which concern the income-generating activities) and financial budgets (which concern the cash resources and financial position).
Other questions
Which of the following is considered the primary method of communicating agreed-upon objectives throughout an organization?
Which of the following is NOT a primary benefit of budgeting?
What is the term for the budgetary approach that starts with input from lower-level managers and works its way up to top management?
What is the first budget prepared in the master budget, serving as the basis for all subsequent budgets?
Using the data for Hayes Company from Illustration 23-3, what are the total budgeted sales for the year?
The production budget formula starts with budgeted sales units and then adjusts for changes in which inventory?
Hayes Company believes it can meet future sales requirements by maintaining an ending inventory equal to 20 percent of the next quarter's budgeted sales volume. First-quarter sales are 3,000 units and second-quarter sales are 3,500 units. What is the desired ending finished goods inventory for the first quarter?
The direct materials budget is derived from the direct materials units required for production, plus desired ending direct materials, less beginning direct materials. What is the final result of this calculation?
Using the data for Hayes Company's direct materials budget in Illustration 23-7, what is the total cost of direct materials to be purchased in the second quarter?
The direct labor budget shows the quantity and cost of direct labor necessary to meet production requirements. How is the total direct labor cost calculated?
The manufacturing overhead budget distinguishes between which two types of costs?
What is the end-product of the operating budgets?
Using the data for Hayes Company in Illustration 23-12, what is the total standard unit cost of producing one Rightride?
Which of the following is often considered the most important financial budget?