Master Budget in Cost Accounting

The background of this paper is there are still companies that do not understand how important a budget plan in compiling business activities. A budget that is not prepared properly can cause the company's existence to be threatened because it does not know whether it is experiencing profit or loss. Therefore, this paper was made with the aim of helping to understand the importance of a company having a master budget that includes capital and revenues achieved so that sales do not suffer losses. The data type used in the paper is qualitative data. This method shows that the master budget is very effective in preparing short-term planning and ensuring that the implementation is directed.