Final answer:
The last step in developing the master budget is preparing the budgeted balance sheet, which is the culmination of all previous budgeting steps. So, the correct answer is option a.
Step-by-step explanation:
The last step in developing the master budget is a. Preparing the budgeted balance sheet. The master budget process typically begins with the sales budget, from which the production budget and related component budgets such as the direct materials budget, direct labor budget, and manufacturing overhead budget are derived. Once these are established, the company can prepare the cost of goods sold budget and the selling and administrative expense budget, which are then used to prepare the budgeted income statement.
After the income statement is prepared, the next step is to develop the cash budget, which forecasts the company's cash inflows and outflows. Finally, the company can prepare the budgeted balance sheet, which provides a projected financial position at the end of the budget period, incorporating the outcomes of all the other budgets.
So, the correct answer is option a.