Master Budget

Enclosed are the purposes and the processes of making a master budget and why it is important to a company. A master budget is generally used as a tool to formulate intelligent decisions on the management and growth of a business venture. Analyzing a business process helps us to understand its key elements. In the master budget process, the strategic and operational planners' primary concern is to develop a realistic plan that can be used …

…in the future and how they plan on getting there. Management should have a detailed plan by which they can measure their performance and adjust the organization's direction when it becomes necessary. Without a plan, it becomes very difficult to analyze and understand the factors that are affecting performance. A master budget process can give management the information and mechanism they need to align the entire organization and focus it on its goals. ------------------------------------------------------------------------ **Bibliography**