Final answer:
The budget that consists of a number of separate but interdependent budgets that formally lay out a company's sales, production, and financial goals is called a master budget.
Step-by-step explanation:
The budget that consists of a number of separate but interdependent budgets that formally lay out a company's sales, production, and financial goals is called a master budget.
The master budget is an overall plan that includes various sub-budgets, such as a sales budget, production budget, and financial budget. These sub-budgets are interconnected and provide a comprehensive view of the company's operations and financial performance.
For example, the sales budget outlines the expected sales revenue, which then feeds into the production budget to determine the required production levels and costs. The financial budget incorporates the information from these sub-budgets to project the company's cash flow, expenses, and profitability.