The operating budget
A)compares estimated cash flows from operations with planned expenditures.
B)shows cash inflows and outflows for each capital project.
C)depicts planned revenues and expenditures for each organizational unit.
D)is used to plan for the purchase and retirement of property,plant,and equipment.

Question

Quizplus · Accepted Answer

The operating budget depicts planned revenues and expenditures for each organizational unit within a company. It does not compare cash flows or show cash inflows and outflows for capital projects, nor is it used to plan for the purchase and retirement of property, plant, and equipment.

The Operating Budget