--%>
Assignment Help - homework help

Explain Operating Budgets

Operating Budgets: It is a financial document which aids a business in making significant decisions regarding its actions. An operating budget does not contain instant impact on the actual state of the business and exhibits only future projections. Businesses make and adjust operating budgets as required to help reflect business situations more precisely.

An operating budget is designed to provide a snapshot of all estimated expenses and income. The operating budget collects information from all business sources of income, comprising interest. It too attempts to account for factors like lost inventory and accounts which will not be paid, employing past data and percentage analysis to make accurate figures. The operating budget is made simply for a specific time period. Several companies make them for the quarter, whereas others make them for the whole year.

   Related Questions in Managerial Accounting

  • Q : Cash shortage/overage An income

    An income statement item that represents the difference between the actual cash amount and an accounting measure of how much cash there should be. The most common example exists in a retail situation where the cash in the cash register is compared to the register tape

    		•
  • Q : Explain Cost Allocation Cost Allocation

    Cost Allocation: This is a technique of assigning costs to activities, outputs, or other cost objects. The allocation base employed to assign a cost to objects is not essentially the cause of the cost. For illustration, assigning the

    		•
  • Q : Position analysis in a business What do

    What do you mean by the term position analysis in a business? Briefly illustrate it.

    		•
  • Q : Rights of each partner The rights of

    The rights of each partner: Under the Partnership Act, partners have the right to: Share equally in profits and losses; Indemnity; Interest on advances; Interest on capital; Share in management of

    		•
  • Q : Explain Investor Accounting Investor

    Investor Accounting: It is an individual who commits money to investment products with the hope of financial return. Usually, the primary concern of an investor is to diminish risk whereas maximizing return, as opposed to a speculator, who is willing

    		•
  • Q : Adjunct account An account in financial

      An account in financial reporting that increases the book value of a liability account. An adjunct account is a valuable account from which cred

    		•
  • Q : Capital account on credit and debit side

    List the items that might appear on the debit side and credit side of a partner's fluctuating capital account. Answer: On debit side: Drawing, interest on drawing, c

    		•
  • Q : What is Activity Analysis Activity

    Activity Analysis: The identification and explanation of activities in an association. The activity analysis comprises determining what activities are completed within a department and how many people execute the activities, how much

    		•
  • Q : Illustrate the effect of tax on the

    The U.S. market for rice is illustrated below.   The world pric

    		•
  • Q : Activity-based costing Normal 0 false

    Normal 0