a. Denise was questioned recently about her department's spending in excess of the budget. This is an

Question:

a. Denise was questioned recently about her department's spending in excess of the budget. This is an example of using the budget for coordination.
b. The three major categories of the master budget are the operating budgets, the capital budgets, and the pro forma financial statements.
c. The master budget generally starts with preparation of a budgeted income statement.