The correct answer is: A. Master budget.
A master budget is a comprehensive financial plan for a business that outlines the company’s goals for the upcoming year. It is a consolidated summary of the various functional budgets, such as the sales budget, production budget, and cash budget. The master budget is used to help managers make decisions about how to allocate resources and achieve the company’s goals.
A sales budget is a forecast of the company’s sales for the upcoming year. It is used to determine the amount of product that needs to be produced and the amount of inventory that needs to be held.
A production budget is a forecast of the company’s production for the upcoming year. It is used to determine the amount of labor, materials, and overhead that will be needed.
A cash budget is a forecast of the company’s cash flow for the upcoming year. It is used to determine the amount of cash that the company will need to borrow or invest.
The master budget is a critical tool for businesses of all sizes. It helps managers make informed decisions about how to allocate resources and achieve the company’s goals.