Components of the Master Budget

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Components of the Master Budget

A master budget provides an overarching view of an organization’s goals and expectations for the future. Due to its all-encompassing nature, there can be many components which are found in a master budget, each related to a different business operation or department, including the Human Resources department. For this Application, you will analyze the master budget and its components in greater detail. In a 2- to 3-page paper, address the following:

  • For each section of the master budget, describe its purpose, the type of information that would be contained in that particular section, and the importance of that budget section to the success of the organization. Consider the role of the Human Resource department. Discuss the importance of the master budget to the success of the HR function. What if any conflicts or potential inconsistencies might exist between an HR budget and the master budget? Be specific.
  • Comment on why each budget piece must be created in that specific order. For example, why does the sales budget have to come before the production budget?

Master Budget Components

Income

Expenses

Overhead and Production

Total (net income or loss)

Projections

Other Budgets and Report

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