The operating (master) budget identifies the funds (and the allocation of those funds) required to operate a business at a projected level of revenue.

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The operating (or master) budget is a financial plan that outlines the expected revenue and the funds needed to run a business during a specific period, such as a year or a quarter. It includes details about expenses, such as salaries, rent, utilities, and materials, and how these expenses will be funded, such as through sales, loans, or investments. The operating budget helps managers and business owners to make informed decisions about resource allocation, performance evaluation, and goal setting.

The Operating (Master) Budget Identifies the Funds (And the Allocation