An operating budget is the major part of the master budget that focuses on the balance sheet and supporting schedules.

Question

Quizplus · Accepted Answer

An operating budget focuses on the income statement, not the balance sheet. The supporting schedules for an operating budget include sales forecast, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, selling and administrative expense budget, and budgeted income statement.

An Operating Budget Is the Major Part of the Master