Functional Budget
Master Budget
Long Period Budget
Flexible Budget
Answer is Right!
Answer is Wrong!
The correct answer is: A. Functional Budget
A functional budget is a summary of all functional budgets in a capsule form. It is a financial plan that outlines the expected revenues and expenses for a specific period of time, usually one year. The functional budget is divided into several sections, each of which covers a different functional area of the business, such as sales, marketing, production, and finance.
The functional budget is a valuable tool for planning and controlling a business’s finances. It helps to ensure that all departments are working towards the same goals and that the company is on track to meet its financial targets.
The other options are incorrect because:
- A master budget is a comprehensive financial plan that includes all of the functional budgets, as well as other budgets, such as a capital budget and a cash flow budget.
- A long-period budget is a financial plan that covers a period of more than one year.
- A flexible budget is a budget that is adjusted to reflect changes in actual sales and expenses.