The Master Budget Includes Three Components-The Operating Budget,the Capital Expenditures

question 163

True/False

The master budget includes three components-the operating budget,the capital expenditures budget and the financial budget.

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Definitions:

Cost of Capital

The cost of funds used for financing a business, typically considered as the weighted average of the costs of equity and debt financing.

Tax Rate

The amount of tax a person or company must pay, expressed as a percentage of income.

Optimal Level

The most efficient, effective, or desirable point or degree for a specific outcome or condition.