An explanation of the elements of the Master Budget

You are required to prepare a report to comment on the budgeted income statement for the following Financial Year. The report should cover the followings:

a. An explanation of the elements of the Master Budget.

b. A discussion about the comparison of top-down and bottom-up approach to the budget process and analyse which one is more suitable for your chosen company.

c. Based on the 2018 Annual Report, produce budgeted income statement for 2019 with the following changes: (i) Sales are projected to grow by 10%, (ii) Costs of Goods Sold are projected grow by 8% and (iii) Expenses are projected to grow by 2%.

d. Present the Budgeted Income Statement for 2019 and Actual Income Statement for 2018. Compare the data and provide your opinion on the changes.