Final answer:
The cash budget is not an operating budget because it forecasts an organization's cash flows and deals with liquidity management, whereas an operating budget concerns day-to-day business operations. The correct answer is option d.
Step-by-step explanation:
The question relates to the different components of an operating budget in a business setting. An operating budget is used for planning and controlling the day-to-day operations of a business over a specific period, usually one year. It typically includes detailed plans for sales, production, direct materials, direct labor, overhead, selling, and administrative expenses.
Sales Budget
A sales budget estimates the expected sales in units and in dollars. It's the starting point of the budgeting process as other budgets depend on its projections.
Production Budget
The production budget calculates the number of units that must be produced to meet sales needs and to provide for the desired ending inventory.
Direct Labor Budget
The direct labor budget estimates the total direct hours required and the associated labor cost to support the production budget.Cash Budget
The cash budget, on the other hand, forecasts an organization's cash inflows and outflows, rather than directly dealing with operating activities. It is more concerned with liquidity management and financing than day-to-day operations. Therefore, it is not considered a component of an operating budget.
Thus, the correct answer is d. cash budget, which is not an operating budget.