The First Step in Preparing the Operating Budget Is the ________

question 118

Multiple Choice

The first step in preparing the operating budget is the ________.

• A)cash budget
• B)capital budget
• C)operating expense budget
• D)sales budget

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Definitions:

Operations Margin

An indicator of profitability, calculated as the ratio of operating income to net sales, reflecting the efficiency of a company's operations.

Net Operating Income

The profit generated from a company's regular business operations, excluding deductions of taxes and interest.

Legumes Division

A segment within a company that focuses on the production, distribution, and sale of legume-based products.

Net Operating Income

A company's income after all operating expenses, excluding taxes and interest, have been deducted from total revenues.