The operating budget contains the
revenue
In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business.
Commercial revenue may also be referred to as sales or as turnover. Some companies receive rev ...
and expenditure generated from the daily business functions of the company; see .
[Edriaan Koening (N.D.]
What is Corporate Budgeting?
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It concentrates on the
operating expenditures, i.e.:
cost of goods sold (COGS), the cost of direct labor and direct materials that are tied to production;
as well as the
overhead and administration costs tied directly to manufacturing the goods and providing services.
The operating budget will not, however, contain
capital expenditure
Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. It is considered a capital expenditure ...
s and
long-term loans; for these see
capital budgeting.
References
Budgets
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