A master budget is a plan created to manage a company's manufacturing and sales activity to meet profit and cash flow goals. Creating a master budget requires careful coordination of several smaller budgets covering all parts of the organization; that way, the master budget is realistic but not complacent.
The master budget contains the following elements:
Sales budget
Production budget
Direct materials budget
Direct labor budget
Manufacturing overhead budget
Selling and administrative budget
Capital acquisitions budget
Cash budget
Budgeted financial statements