Various budgets can be produced for planning and evaluating performance within an organization.The operating budget
A)compares estimated cash flows from operations with planned expenditures.
B)shows cash inflows and outflows for each project.
C)depicts planned revenues and expenditures for each organizational unit.
D)is used for the purchase and retirement of property,plant,and equipment.

Question

Quizplus · Accepted Answer

The operating budget depicts planned revenues and expenditures for each organizational unit. It focuses on the day-to-day operations of the organization and helps in determining how much money each unit will require to maintain its operations for the upcoming period. It assists in monitoring performance and identifying areas of concern for corrective action. Option A is associated with cash budget, option B is associated with project budget, and option D is associated with capital budget.

Various Budgets Can Be Produced for Planning and Evaluating Performance