Which of the following is considered an operating budget estimate?
A) The prepayments budget.
B) The debt service budget.
C) The manufacturing cost budget.
D) The capital expenditures budget.

Question

Quizplus · Accepted Answer

Operating budgets are those budgets that involve day-to-day operating activities of the company, such as production or manufacturing costs, materials, labor, and overhead expenses. Among the given options, only the manufacturing cost budget - which calculates the cost of goods sold or produced - is a part of the operating budget. Prepayments budget and debt service budget are part of the cash budget; and capital expenditures budget is a part of the capital budget.

Which of the Following Is Considered an Operating Budget Estimate