Which Is NOT a Characteristic of the Master Budget

question 141

Multiple Choice

Which is NOT a characteristic of the master budget?

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

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Definitions:

Long-Lived Asset

Assets used in the operations of a business that are expected to provide economic benefits for a period longer than one year.

Net Book Value

The value of an asset after subtracting accumulated depreciation from its original cost, synonymous with carrying value but rephrased for clear understanding.

Discontinued Item

Pertains to the gains or losses from operations of a component of a business that has been disposed of or is held for sale.

Intangibles

Assets that do not have physical form, such as patents, trademarks, and goodwill, but are valuable to a business.