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Asked by Lauren Ferris on May 06, 2024

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The master budget consists of a number of separate but interdependent budgets.

Master Budget

A number of separate but interdependent budgets that formally lay out the company’s sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet.

Interdependent Budgets

Budgets within an organization that are related and influenced by one another, requiring coordination for effective financial planning.

  • Recognize the role and structure of the master budget.
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Camila TrimminoMay 12, 2024
Final Answer :
True
Explanation :
The master budget is comprised of individual budgets such as the sales budget, production budget, direct materials budget, direct labor budget, overhead budget, selling and administrative budget, and the cash budget. These budgets are interdependent as they are linked to one another and are created based on assumptions from previous budgets.

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