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Functional budgets are subordinate to the:
AProduction budget
BCash budget
CSales budget
DMaster budget
Answer & Solution
Correct answer: D. Master budget
1. The master budget consolidates all functional budgets into a single overarching plan.
2. It expresses the firm's coordinated profit and cash position.
3. Functional budgets feed into the master budget.
4. Hence functional budgets are subordinate to the master budget.
_Source: ICAI BoS Inter Paper 3, Ch 15 "Budget", §15.7 ¶2_
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