Chapter nine: budgeting, production, cash, and master budget. Budgets: plans of acion expressed in inancial terms, the future and are a key component of planning. Strategic plan: the long-term plan for future aciviies and operaions, usually involving at least ive years (the step before budgeing) Advantages of budgeing: planning, informaion for decision making, standards for performance evaluaion, improved communicaion and coordinaion. Control: the process of seing standards, receiving feedback on actual performance, and taking correcive acion whenever actual performance deviates signiicantly from planned performance. Master budget: the collecion of all area and acivity budgets represening a irm"s comprehensive plan of acion. Typically for one-year period, corresponding to the iscal year of the company. Prepares the master budget for the coming year during the last four or ive months of the current year. Coninuous budget: a moving 12-month budget with a future month added as the current month expires.