Select the Correct Statement About the Master Budget

question 129

Multiple Choice

Select the correct statement about the master budget.

• A) The master budget is a group of detailed budgets and schedules representing the company's operating and financial plans for the past accounting period.
• B) The master budget usually includes operating budgets and capital budgets and pro forma financial statements.
• C) The budgeting process usually begins with preparing the strategic budgets.
• D) Preparing the master budget begins with the cash budget.

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Definitions:

Cost Variance

The difference between the budgeted cost of work performed and the actual cost of work performed on a project.

Estimate To Complete

A financial analysis projecting the cost required to finish a project based on its current status and past performance.

Parametric Estimates

Estimation technique using statistical relationships between historical data and variables to calculate cost, duration, and resource requirements.

Parameters

A set of boundaries or limits that define the scope and operating conditions of a system, project, or experiment.