LO 8.4What is the main difference between a flexible budget and a master budget?

Flexible budget and master budget are very different.

Explanation:

The "master budget" is the sum of all the budgets that are prepared by a company's various departments. They include financial statements that are budgeted, a financing plan and a cash forecast. They are based on one specific level of production.

A "flexible budget" is a budget that changes or adjusts when the level of activity changes. They are dynamic in nature and can be operated on many levels of output. It is realistic and not based on assumption.