Master budgets

This refers to a consolidation of all the organisation’s lower level budgets and financial estimates.

The master budget typically consists of: budgeted financial statements, budgeted cash statements, consolidated lower level budgets (such as budgets for individual functions – research, production, sales, administration departments etc – and/or budgets for individual topics – direct labour, materials, distribution etc.

Master budgets is a term normally found in management accounting and strategic management.

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