Budgets that combine sales forecasts with estimates of production costs and operating expenses to forecast profits are known as which of the following?
A) operating budgets
B) centralized budgets
C) strategic budgets
D) cash budgets

Question

Quizplus · Accepted Answer

Operating budgets are created by combining sales forecasts with estimates of production costs and operating expenses, and they allow for the forecasting of profits. Centralized budgets refer to a budgeting model where a central authority creates and manages the budget for a company, while strategic budgets focus on long-term financial goals and objectives. Cash budgets, on the other hand, are focused purely on cash flow and do not take into account sales forecasts or operating expenses.

Budgets That Combine Sales Forecasts with Estimates of Production Costs