Operating budget

{{Short description|Income and expenditure from daily business}}

{{more|Operational planning|Corporate budget}}

The operating budget contains the revenue and expenditure generated from the daily business functions of the company.Jonas Elmerraji (2021). [https://www.investopedia.com/articles/07/budgetingforcompanies.asp How Budgeting Works for Companies], investopedia.comEdriaan Koening (N.D.) [https://smallbusiness.chron.com/corporate-budgeting-18525.html What is Corporate Budgeting?], chron.com

It concentrates on the operating expenditures — the cost of goods sold, the cost of direct labour 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 contain capital expenditures and long-term loans.