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If you are in business you probably know all too well that preparing a master budget can be a daunting yet extremely important task. The master budget is a comprehensive planning document that incorporates several other individual budgets. A master budget is usually classified into two individual budgets: the Operational budget and the Financial budget. The master budget is usually considered as the cornerstone of the entire budget. Each separate part consists of preparation for other budgets are discussed in this paper.
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