In Essence,the Terms "Master Budget" and "Operating Budget" Mean the Same

question 56

True/False

In essence,the terms "master budget" and "operating budget" mean the same thing and can be used interchangeably.

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Definitions:

Avoidable Cost

Expenses that can be eliminated if a particular decision or action is avoided.

Financially Better

A general term that implies an improvement in financial condition or performance compared to a previous period.

Variable Expenses

Costs that fluctuate in direct proportion to changes in the level of activity or business operations, such as materials and labor.

Fixed Expenses

Costs that do not change with the level of production or sales activity, such as rent, salaries, and insurance.