Question

Many of the schedules in a master budget are based on a variety of management estimates and assumptions. Is this statement true or false?

1) True
2) False

Answer 1

The statement is true. Many of the schedules in a master budget are based on management estimates and assumptions.

Step-by-step explanation:

The statement is true. Many of the schedules in a master budget are indeed based on a variety of management estimates and assumptions. In the process of creating a master budget, managers make estimates and assumptions about sales, expenses, production levels, and other factors that impact the budget. These estimates and assumptions help in forecasting future financial performance and planning the allocation of resources.