Question

A master budget:A. indicates costs of the organization only for the coming year.B. indicates sales and production but does not address costs of the organization for the coming year.C. indicates sales, production, and costs of the organization for the coming year.D. indicates sales of the organization only for the coming year.

Answer 1

Answer: C. indicates sales, production, and costs of the organization for the coming year

Step-by-step explanation:

A master budget simply means a business strategy or plan that indicates future sales, production, and costs of an organization. It also refers to the future investments, products to be purchased and products to be repaid at the same time. The master budget encompasses all other financial budgets of an organization for the future.

The master budget is used by an organization or company to make strategic plans for the future as well as the current year. A typical example of a master budget plan is strategically planning to buy or acquire another company or organization or merging with another company or organization.