Question

Operating budgets are concerned with:

a. the financial position of a firm.
b. the cost-cutting activities of a firm.
c. inflows and outflows of cash.
d. the income-generating activities of a firm.

Answer 1

Operating budgets are concerned with the income-generating activities of a firm. They focus on planning and allocating resources to different departments or projects within the organization. Therefore, the correct option is D.

Step-by-step explanation:

Operating budgets are concerned with the income-generating activities of a firm. They focus on planning and allocating resources to different departments or projects within the organization. These budgets typically include estimates of revenue, expenses, and profits based on sales forecasts, production levels, and cost analysis.