11.If the total quality management approach is employed to determine the level at which budgeted amounts are set, then absolute efficiency is assumed.
12.In a master budget, the sales forecast would be dependent upon the budgeted production figures.
13.A master budget is a comprehensive financial plan setting forth the financial and operational goals of a business.
14.A master budget actually includes a number of related budgets.
15.Once a company determines its desired production level, it uses that estimated production level to forecast sales for the period.
16.A cash budget determines the maximum amount of money that can be spent during the period.
17.In preparing a master budget, budgeted levels for production, manufacturing costs, and operating expenses normally are determined after preparing the sales forecast.
18.The typical starting point of a master budget would be to prepare a budgeted balance sheet.
19.The preparation of a budgeted balance sheet requires consideration of the budgeted capital expenditures and budgeted net income.
20.A budget provides a comprehensive plan enabling multiple departments to work together in a coordinated manner.