The operating budgets of a company includes the
A) cash budget
B) capital expenditures budget
C) financing budget
D) production budget

Question

Quizplus · Accepted Answer

The operating budgets of a company are those budgets that relate to the day-to-day operations of the business. The production budget is one of the most important operating budgets as it helps to determine the amount of goods that need to be produced over a particular period of time. This budget takes into account the expected sales, the inventory levels, and the production capacity of the business. The cash budget is also an important operating budget, but it relates more to the company's cash flow and liquidity position rather than to its day-to-day operations. The capital expenditures budget and the financing budget are both capital budgets that relate more to long-term investment decisions and financing strategies, rather than to the day-to-day operations of the business.

The Operating Budgets of a Company Includes the