Define Operating Budgets and Financial Budgets

question 130

Essay

Define operating budgets and financial budgets. List the specific budgets which are operating budgets. List the specific budgets which are financial budgets.

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Definitions:

Project Analysis

The process of evaluating the viability and potential return on investment of a project before committing resources to it.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Cash Flows

Refers to the net amount of cash and cash-equivalents being transferred into and out of a business.

Patent Rights

Legal protections granted to inventors, giving them exclusive rights to use, make, and sell their invention for a certain period of time.