Master Budget
Accounting glossary · Understand, connect, apply
A master budget is a coordinated set of operating and financial budgets covering an organisation’s plan for a period. Its components connect expected sales, resources, expenditure, cash and financial statements.
Example
A manufacturer’s sales plan drives production, materials and labour budgets. Collection and payment timings then feed the cash budget and budgeted balance sheet.
Remember the difference
The parts must agree with one another. Budgeted profit does not establish that enough cash will be available when payments fall due, and a budget is a plan rather than a guarantee.
Browse the accounting glossary → · Follow a learning path
Published 4 November 2026. Prepared with AI assistance; examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
← Return to the accounting glossary