Which of the following statements is true of the operating budget?
A) It is a part of the financial budget.
B) It includes the capital expenditures budget.
C) It includes the sales budget.
D) Its final component is the cash budget.

Question

Quizplus · Accepted Answer

The operating budget includes the sales budget which forecasts the company's expected sales revenue. Option A is incorrect as the operating budget is a separate budget from the financial budget. Option B is incorrect as capital expenditures budget is a part of the capital budget. Option D is incorrect as the cash budget is a separate budget which shows the expected cash inflows and outflows.

Which of the Following Statements Is True of the Operating