A master budget is a collection of smaller operating and financial budgets that provide a high-level overview of a company's finances. It has advantages like making it easier to identify potential fiscal issues and designating resources, but disadvantages like lacking specificity between departments and details that could affect other budgets. A master budget is meant for C-level executives and may not be easily understood by middle management or employees.

1. What Are The Advantages & Disadvantages of a Master Budget?
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2. What is a Master Budget?
A Master Budget is a collection of smaller budgets within a company.
These smaller budgets are grouped into two major areas:
•Operating Budgets: Directly related to the creation of the product/service.
•Financial Budgets: Expenditures from the Operating Budgets but do not have a direct relationship to the creation of products or services.
(Jane, June)

3. (Kimmel 1037)

4. Advantages
•High level visualization of the company’s finances.
•Makes identification of possible future fiscal issues easier.
•High level designation of resources without worrying about smaller details.

5. Disadvantages
•No specificity in the data between departments or work groups.
•Lack of details that can affect other budgets within the organization.
•Language is usually C-level oriented and may not be easily understood by middle management or employees.

6. References
•Jane, M. (June 2012). What is a Master Budget. Retrieved from http://www.ehow.com/info_7806988_master-budget.html
•Kimmel, Paul D.. Accounting: Tools for Business Decision Making, 4th Edition. John Wiley & Sons, 07/2011.