All of the following are parts of a Master budget except a___________________. (Points : 1)
A sales budget
B production budget
C direct labor budget
D balanced scorecard
ANSWE4 D
Yes, D.
To determine which of the options is not a part of a Master budget, we can analyze each option and its relevance to the Master budget.
A Master budget is an overall financial plan that includes various individual budgets, which are interconnected and represent different aspects of the organization's operations. The purpose of a Master budget is to estimate and plan the organization's financial activities, including sales, production, and resource allocation.
Let's examine each option to determine whether it is a part of a Master budget:
A) Sales budget: This budget forecasts the organization's sales revenue based on historical data, market conditions, and sales strategies. It is an important component of a Master budget as it provides the foundation for other budgets.
B) Production budget: This budget estimates the quantity of goods or services that need to be produced to meet the projected sales. It considers factors such as inventory levels, customer demand, and production capacity. The production budget is crucial in planning the organization's operations and resources.
C) Direct labor budget: This budget forecasts the labor costs associated with production, including wages, benefits, and related expenses. It helps in determining the labor requirements and associated costs for the organization's production activities.
D) Balanced scorecard: The balanced scorecard is a performance measurement and management system that provides a balanced view of the organization's performance across multiple dimensions, such as financial, customer, internal processes, and learning and growth. It is not directly related to the financial planning and estimation process that a Master budget entails.
Based on the analysis, the option that is not a part of a Master budget is D) balanced scorecard. The balanced scorecard focuses on performance measurement and management, while a Master budget primarily deals with financial planning and estimation.