Question

What is the "key" to the entire operating budget?

A. The forecast of operating activity.
B. The budgeted income statement.
C. The budgeted balance sheet.
D. The production/purchases budget.

Answer 1

The key to the entire operating budget is the forecast of operating activity.

Step-by-step explanation:

The key to the entire operating budget is A. The forecast of operating activity. The operating budget is a plan or forecast that details the expected revenue and expenses for a specific period of time, typically a year. It includes estimates of the financial activities such as sales, production costs, overhead expenses, and other operating costs.