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Budgeting

?

The master budget

Shows forecasted and actual results.
Reflects controllable costs only.
Can be used to determine manufacturing cost variances.
Contains the operating budget.

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

(d) The requirement is to identify a characteristic of the
master budget. Answer (d) is correct because the master budget
is a comprehensive budget that includes both the operating and
financial budgets. Answer (a) is incorrect because the master
budget does not show actual results. Answer (b) is incorrect
because the master budget shows all costs, controllable and uncontrollable.
Answer (c) is incorrect because the master budget
is not structured for the computation of variances.

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