## Master Budget
CIMA Definition: "The summary budget, incorporating its component functional budgets, which is finally approved, adopted and employed."
### What it contains
Once all functional budgets (sales, production, materials, labour, overhead, cash, capital expenditure, etc.) are finalised, the Budget Officer consolidates them into the Master Budget, which typically consists of:
1. Budgeted Profit & Loss Account — shows expected profitability.
2. Budgeted Balance Sheet — shows projected financial position at period end.
### Role in the Budget Hierarchy
```
Functional Budgets (Sales, Production, Materials, Labour, Overhead…)
↓
Master Budget
(Budgeted P&L + Budgeted Balance Sheet)
```
The master budget is the top-level summary and the document formally approved by management before the budget period begins.