Question

What is an operating budget?- the amount an organization has left after all the costs of making the product and running the business have been deducted- a blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently- a measure of how much profit a company is earning on sales- the actual cost of running the business for a specified time period- the amount of money the business’ owners are willing to spend during a fiscal year

Answer 1

Answer:

The correct answer is: a blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently.

Explanation:

The operating budget of an organization can be defined as an estimate of the organization's expenses and income during a period. The organization uses it to decide how to efficiently use available resources to achieve organizational goals.

Operating budget involves a number of components:

• Revenue
• Variable cost
• Fixed cost
• Non-cash expenses
• Non-operating expenses

Capital costs are generally not included as operating budget is a short term budget and these costs are long term.