Question

This budget does NOT require the approval of the Budget Committee before it is put into operation:

1. Sales Budget
2. Master Budget
3. Summary Budget
4. Cash Budget

Options

• I & II

• II & IV

• I & IV

• Only III

Answer 1

I & IV

Explanation:

Sales and cash budgets are functional (departmental) budgets prepared and executed by managers and can be put into operation without prior Budget Committee approval; the Master/Summary (consolidated) budget requires committee approval.