What Is NOT a Characteristic of the Master Budget

question 105

Multiple Choice

What is NOT a characteristic of the master budget?

• A) The sales forecast is prepared before the sales budget.
• B) The production budget is prepared in units and dollars.
• C) One approach to forecasting sales is the bottom-up approach.
• D) The master budget is the comprehensive plan for the organization as a whole.

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Definitions:

Concentrated Benefits

Economic or political benefits that are narrowly distributed to a small, specific group, often leading to imbalanced influence or decision-making.

Diffuse Costs

Diffuse costs are expenses that are spread out and not easily attributed to a single product, project, or activity, often indirect in nature.

Unintended Consequences

Outcomes that are not the ones foreseen or intended by a purposeful action.

Domestic Clothing Factories

Factories located within a country's borders that manufacture clothing and apparel for local consumption or export.