The master budget is an important source of feedback for an organization.

The first stage in the budgeting process is the preparation of a sales budget.

The cash budget is prepared immediately after the sales budget.

In a manufacturing organization, the production budget is prepared immediately after the sales budget.

The cash budget is constructed after all other budgets have been completed.

The primary purpose of a master budget to prepare financial statements.

The budgeting process involves several steps, including the preparation of various budgets such as sales, production, and capital budgets.

The operating budget is expressed both in units and dollars.

The effect of capital expenditures on the master budget is reflected through cash payments made for acquisition of capital assets.

The balance for Accounts Receivable is projected before the cash collections schedule is prepared.

The Capital Budget concerns the income-generating activities of the firm.

Production Budget calculations involve determining the total units to be produced, which is computed as expected sales + desired ending inventory - beginning inventory.

The amount of raw materials that must be purchased can be computed by the formula:Expected sales + Desired ending inventory - Beginning inventory.

Cash budgeting involves forecasting cash inflows and outflows to manage a company's liquidity.

The primary purpose of a cash budget to determine production levels.

The process of planning and the management of the long-term investments of a company is called Capital Budgeting.

A master budget typically includes both operating and financial budgets.