The success of a business is often dependent on its ability to effectively manage
its Master budget. The Master budget is a collection of interrelated budgets, each
related to one or more business units of the organisation. The performance of
each business unit manager is thereby influenced by their budget/s.
Your task is to write a report on the significance of the Master budget on the
success of a business. As part of your report, you are required to explain:
1. THREE (3) of the budgets of the Master Budget (one of them being the
Cash Budget) and how they relate to each other. (400 – 600 words)
2. TWO (2) business units (i.e. departments within a business) and how their
manager’s performance is affected (i.e. judged or gauged) by at least ONE
of the budgets mentioned above. (300 – 500 words)
3. How adherence to the budget affects the business’ overall profitability.
(i.e. how and why budgeting in business is important). (100-200 words).
In addition to an introduction and conclusion (100 words each), your report should
be between 1,000 and 1,500 words. You are also required to use in-text
referencing and a reference list using APA referencing.