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Examples of commonly used operating budgets are sales, production or manufacturing, labor, overhead, and administration. Once budgets are in place, companies can use them to manage activities, compare how they are earning or spending against these budgets, and prepare for future business cycles.
An operating budget consists of all revenues and expenses over a period of time (typically a quarter or a year) that a corporation, government (see the U.S. 2017 Budget), or organization uses to plan its operations.
As the name suggests, an annual operating budget is a detailed statement of an organization's estimated revenue and expenses over a year. The budget acts as a reference point for all your activities over the next twelve months.
An operating budget is a detailed projection of what a company expects its revenue and expenses will be over a period of time. Companies usually formulate an operating budget near the end of the year to show expected activity during the following year.
The Annual Operating Budget provides financial information regarding anticipated revenue and anticipated expenses. Anticipated revenue and expenses reflect the expected revenue and expenses for the next year of operations and constitute the working budget for the facility.