Which of the following describes the operating expenses budget?
A) It depicts the breakdown of sales based on terms of collection.
B) It captures the variable and fixed expenses of the business.
C) It helps in planning to ensure the business has adequate cash.
D) It aids in planning to ensure the company has adequate inventory on hand.

Question

Quizplus · Accepted Answer

The operating expenses budget captures the variable and fixed expenses of the business, such as rent, salaries, utilities, and supplies. It is a detailed plan that outlines the expenses for the upcoming period and helps in managing the cash flow of the business. Option A refers to the accounts receivable budget, option C refers to the cash budget, and option D refers to the inventory budget.

Which of the Following Describes the Operating Expenses Budget