THE ASSUMPTIONS OF THE MASTER BUDGET
The following assumptions are made when preparing a master budget:
1) Sales prices are constant during the budget period.
2) Variable costs per unit of output are constant during the budget period.
3) Fixed costs are constant in total.
4) Sales mix is constant when the company sells more than one product.
The following assumptions are made when preparing a master budget:
1) Sales prices are constant during the budget period.
2) Variable costs per unit of output are constant during the budget period.
3) Fixed costs are constant in total.
4) Sales mix is constant when the company sells more than one product.