Responsibility Accounting: Master Budget This is part one in our responsibility accounting series and we will be discussing types of budgets. So we are going to talk about the master budget here. Master budget is the set of budget financial statements and the supporting schedules for organization and includes three types of budgets. The first one is called the operating budget, the second is the capital expenditures budget and the third is financial budgets. We are going to look at each one of these and what makes up each of these types. The first one being the operating budget-- the first part of the operating budget, which is also the cornerstone of the master budget, is the sales budget. The sales budget will determine what our sales are going to be; this will forecast what we anticipate our sales to be. It’s where an older company would probably forecast this by looking at past sale levels and in projecting hopefully our sales to increase in coming periods and budge...
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