Master Budgert
There are many reasons that a company should create a master budget including
“promoting coordination and communication among subunits within the company, providing a
framework for judging performance and facilitating learning, and motivating managers and other
employees (Horngren 199).” Budgeting is an integral part of successful business planning as it
allows a business to plan for extended periods of time in the future. While creating master
budgets can take a lot of time, up to 50% for a financial planning department, the common use
makes it apparent that the positive aspects of utilizing a budget outweigh the negative resource
impact on a company. When creating a budget, companies must consider their main objective,
how they create value to the customer, their sales market, and the best financial and
organizational structures.
I chose to create my master budget on an outdoor beer garden that serves beer, non-
