Question

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.

Answer 1

The operating budget includes the sales budget along with other components of income and expenses.

Step-by-step explanation:

The correct statement is option C) It includes the sales budget.

The operating budget is a part of the financial budget. It is a projection of a company's income and expenses for a specific period, typically one year. The operating budget includes the sales budget, which forecasts the expected sales revenue for the period. It also includes other components such as the expense budget, production budget, and labor budget.