Final answer:
An operating budget is a statement of estimated income and expenses over a specified period of time used by businesses and organizations to plan and control their financial activities.
Step-by-step explanation:
A budget that is a statement of estimated income and expenses over a specified period of time is referred to as an operating budget. It is used by businesses and organizations to plan and control their financial activities. The operating budget includes projected revenue, such as sales and other income, as well as anticipated expenses, such as wages, rent, and utilities.
For example, a manufacturing company may create an operating budget for the next year, estimating the number of units it expects to sell and the cost of raw materials, labor, and overhead. This budget helps the company set sales targets, manage cash flow, and make informed decisions about resource allocation.