9.17: Introduction to the Master Budget
What you’ll learn to do: Discuss the purpose of an master budget
Every company needs a master budget! The components of this budget are outlined in this unit, along with the order in which they need to be completed. Certain data is needed before the next set of budgets can be completed. Giving the responsibility of the budget to the employees involved in each component of the work can be helpful in insuring that you have set reasonable and attainable budgeting goals.
Let’s take a look at the components of a master budget and how they interrelate.