9.22: Introduction to Preparing a Master Budget
What you’ll learn to do: Illustrate the use of accounting data in a prepared master budget
Master budgets can be based off of historical accounting data for established companies or forecasts for new companies. The accounting data is a crucial component of a master budget as it can provide historical information in order to build a budget with attainable goals.
Let’s go through the sequence of budget preparation and see how accounting data can assist us in the process.