The budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as ___________?

Correct answer: D. master budget

  • A. annual budget
  • B. operating budget
  • C. specific budget
  • D. master budget

Explanation

A master budget combines the operating budgets with the financial budget and presents the organisation’s overall plan for a period, commonly one fiscal year. An annual budget refers mainly to the time period, whereas master budget describes the comprehensive content.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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