Answer (D) is correct . All other budgets are subsets of the master budget. Thus, quantified estimates by management from all functional areas are contained in the master budget. These results are then combined in a formal quantitative model recognizing the organization’s objectives, inputs, and outputs.
Answer (A) is incorrect because The master budget does not contain actual results.
Answer (B) is incorrect because The master budget reflects all applicable expected costs, whether or not controllable by individual managers.
Answer (C) is incorrect because The master budget is not structured to allow determination of manufacturing cost variances, which requires using the flexible budget and actual results.
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