All 34 The Master Budget questions
More in The Master Budget
What is the difference between the operating cycle and the master budget? How is depreciation handled across the master budget statements? What is the link between budgeted contribution and the master budget? What is the budgeted cost of goods manufactured? How does the master budget serve as a coordination tool? How is the budgeted balance sheet prepared? How do changes in one budget cascade through the master budget? How do you build the master budget for a service organization versus a manufacturer? How does the master budget support scenario and sensitivity analysis? How do you incorporate financing and dividends into the master budget?
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Budgeting & Forecasting › The Master Budget

What is the order of dependency among the master budget schedules?

Intermediate

Answer

Each schedule depends on prior ones: sales -> production -> materials/labour/overheads -> unit cost -> COGS and inventory -> operating expenses -> budgeted income statement -> cash budget (using all timings) -> budgeted balance sheet. Getting the order right ensures each figure is available when the next schedule needs it.
Real-world example Production can't be budgeted until sales is set; cash can't be finalized until all costs and timings are known.

Common follow-ups: What must precede the cash budget? | Why does order matter?

Types of Budgets Cash Budgeting The Master Budget
All 34 The Master Budget questions