What Is an Operating Budget

question 58

Multiple Choice

What is an operating budget?

• A)a measure of how much profit a company is earning on sales
• B)the actual cost of running the business for a specified time period
• C)the amount an organization has left after all the costs of making the product and running the business have been deducted
• D)the amount of money the business's owners are willing to spend during a fiscal year
• E)a blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently

---

Definitions:

Ordinal Data

Data that can be categorized and ranked in a specific order, but the intervals between the ranks are not necessarily equal.

Interval Data

A type of numerical data in which the intervals between numbers on the scale are interpretable and equal, allowing for meaningful comparison and arithmetic operations.

Nominal Data

Data classified into categories that cannot be ordered in a meaningful way.

Interval Data

A type of data that is measured along a scale, where the difference between values is meaningful, but there is no true zero point.