What is an operating budget?
A)a measure of how much profit a company is earning on sales
B)the actual cost of running the business for a specified time period
C)the amount an organization has left after all the costs of making the product and running the business have been deducted
D)the amount of money the business's owners are willing to spend during a fiscal year
E)a blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently

Question

Quizplus · Accepted Answer

An operating budget is a detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period (usually a fiscal year). It serves as a blueprint for how managers plan to use resources to achieve organizational goals efficiently.

What Is an Operating Budget