A budget that compares sales or revenues to expenses is called a(n) __________ budget.
A) operating
B) flexible
C) fixed
D) zero-based

Question

Quizplus · Accepted Answer

An operating budget compares sales or revenues to expenses in order to determine a company's profitability. This type of budget typically covers a one-year period and is used by companies to plan for expenses, identify areas where costs can be reduced, and ensure that the company is meeting its financial goals. Flexible budgets allow for adjustments based on changes in sales or expenses, fixed budgets do not allow for any adjustments, and zero-based budgets require every expense to be justified from scratch, rather than using past budgets as a baseline.

A Budget That Compares Sales or Revenues to Expenses Is