CIMA BA2 · Chapter 6 · Question 12 of 13
Which of the following make up the MASTER budget?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The budgeted income statement, budgeted statement of financial position and cash budget
Explanation
The master budget summarises all the functional budgets into a budgeted income statement, a budgeted statement of financial position and a cash budget. Sales, production, materials and labour budgets are functional budgets that feed into it.
More Budgeting MCQs
- Q1What is meant by the PRINCIPAL BUDGET FACTOR?
- Q2Which of the following is NOT a purpose of budgeting?
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- Q4A company plans to produce 18,600 units in March. Each unit uses 3 kg of material costing $4.50 per kg. Opening inventory of material is…
- Q5A company budgets to produce 4,000 units, each needing 2.5 standard hours of productive labour. Idle time is expected to be 20% of the…