Question

Select the one budget below that is not an operating budget.

a. Cost of goods sold budget
b. Cash budget
c. Production budget
d. Overhead budget
e. All of these are operating budgets.

Answer 1

The budget that is not an operating budget is the d) Overhead budget.

Step-by-step explanation:

The budget that is not an operating budget is the Overhead budget. An operating budget is a financial plan that outlines the revenues and expenses of a business's day-to-day operations. It includes budgets for various components such as production, cost of goods sold, and cash.

For example, the Production budget outlines the quantity of goods that a company plans to produce during a specific period. The Cost of goods sold budget estimates the direct costs associated with producing those goods. The Cash budget forecasts the cash inflows and outflows to ensure that there is enough liquidity to support the operations.