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The budget that consolidates all functional budgets into a single statement is the
Acash budget
Bproduction budget
Cflexible budget
Dmaster budget
Answer & Solution
Correct answer: D. master budget
1. Each function prepares its own budget: sales, production, purchases, cash and so on.
2. Those are the functional budgets.
3. The master budget brings them together into one consolidated statement for the entity.
4. It is what the board approves, rather than any single functional budget.
5. A flexible budget is a treatment of activity levels, not a consolidation.
_Source: ICAI Cost and Management Accounting Ch15 'Budgets and Budgetary Control', section 15.7_
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