Which of the following budgets focuses on the income statement and its supporting schedules?

Question

Quizplus · Accepted Answer

The operating budget is the budget that focuses on the income statement and its supporting schedules. It includes budgets for sales, production, direct materials, direct labor, overhead, and other operating expenses. The operating budget is used to determine the expected profitability of the business for a certain period of time. The cash budget focuses on the cash flow and cash balance of the business. The capital expenditures budget focuses on the business's long-term investment in assets such as property, plant, and equipment. The sales budget focuses specifically on the expected sales revenue for a period of time.

Which of the Following Budgets Focuses on the Income Statement