A budget is a financial plan of the resources needed to carry out tasks and meet financial goals. A master budget is part of an overall organization plan for the next year, made up of three components: (1) organizational goals, (2) the strategic long-range profit plan, and (3) the master budget (tactical short-range profit plan). Long-range plans are achieved in year-by-year steps. The guidance is more specific for the coming year than it is for more distant years. The plan for the coming year is called…
Words 322 - Pages 2