Master Budget - Week 5Master Budget - Week 5From Chapter 14 complete question 2, page 516, on the master budget process.Your post shouldaddress how this would work in a health care setting. You must respond to at least two of your classmates' postings to receive full credit.Master budget preparation is usually supervised by a committee because the budget committee is responsible for resolving disagreements among numerous departments over budget matters. The committee is in charge of monitoring reports on how all the various divisions are progressing toward reaching their budget goals. Preparing the master budget requires a committee because the budget committee is a high-level committee that generally includes the company president, vice presidents of marketing, purchasing, production, and finance, and the controller (Edmonds, 2010 pg.532). A budget committee is responsible for combining numerous departmental budgets into a master budget for the whole entire company. The master budget has detailed objectives stated in specific amounts; it describes how management intends toachieve its objectives. The master budget usually covers one year. The primary components of the master budget are the operating budgets, the capital budgets, and the pro forma financial statements. The committee’s decisions can greatly impact the fate of specific business units in terms of resources made available as well as setting the benchmarks that will be used to assess performance. The master budget is an essential part of the coordinating effort. It is the building block of logic that reflects on the financial plan for an entire organization. ReferencesEdmonds, T. Survey of Accounting, 2nd Edition (2nd ed). McGraw-Hill Primis Custom Publishing. Retrieved from
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