Question

The operating budget is _____.

a budget for day-to-day expenses


spending on certain programs that is mandated, or required, by existing law


a budget for major capital, or investment, expenditures


a budget in which revenues are equal to spending

Answer 1

The operating budget is a budget for day-to-day expenses.

Answer: Option A

Step-by-step explanation:

An operating budget includes all revenues and spending over certain period of time that may be either a quarter or a year that is planned by the government or an organisation that uses to organise its operations.

This type of budget is developed in an advance to a period of reporting in accordance with expected goals of an organisation.

The major components of operating budget includes the following measures such as Fixed Costs, variable costs, Revenues, Non-cash expenses, Non-operating expenses, Capital costs.