If inventoriable costs in the operating budget are going to be in accordance with Generally Accepted Accounting Principles (GAAP), they include only variable manufacturing costs.

A master budget is a collection of lower-level budgets that outlines a company's objectives. Responsibility accounting is a budgeting process that involves analyzing and cutting costs.  Here's some more information about master budgets and responsibility accounting: Master budget: A master budget is a strategic plan that combines a company's smaller budgets into one larger budget. It's usually developed by a firm's budget committee and includes a sales budget, production schedule, and direct materials, labor, and overhead budget. A master budget can help management identify goals, motivate... Show more

A master budget is a collection of lower-level budgets that outlines a company's objectives. Responsibility accounting is a budgeting process that involves analyzing and cutting costs. 

Here's some more information about master budgets and responsibility accounting:
Master budget: A master budget is a strategic plan that combines a company's smaller budgets into one larger budget. It's usually developed by a firm's budget committee and includes a sales budget, production schedule, and direct materials, labor, and overhead budget. A master budget can help management identify goals, motivate staff, and plan for the future.
Responsibility accounting: Responsibility accounting is a type of zero-based budgeting process. It involves managers requesting each department to go through the budget line by line, analyzing costs, and cutting costs. This process allows managers to be held accountable for their costs and actions.

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