Operating Budgets Are

question 97

Multiple Choice

Operating budgets are

• A)a forecast of expected operating expenses.
• B)a forecast of operating expenses and related revenues.
• C)a forecast of units of production.
• D)concerned with the income-generating activities of a firm.

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Definitions:

One-Time Expense

An uncommon or unique expenditure that is not expected to recur in the foreseeable future, often highlighted separately in financial statements.

Straight-Line Depreciation

A process for dividing the expense of a tangible asset uniformly across its expected lifetime in annual segments.

Net Annual Operating

Typically refers to the net operating income or profit generated by a business over the course of a year, excluding non-operating revenues and expenses.

After-Tax Discount Rate

The rate used to discount future cash flows of an investment after taxes have been accounted for, reflecting the investor's required rate of return net of taxes.