operating budget

  

Definition

A detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period (usually one year). It generally consists of several sub-budgets, the most important one being the sales budget, which is prepared first. Since an operating budget is a short-term budget, capital outlays are excluded because they are long-term costs.

Use operating budget in a sentence

  • When trying to figure out how much you can spend on a project you first must know your full operating budget.

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  • We had a really good and efficient operating budget to work with that would put us above the rest of the competition.

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  • The operating budget had been increased for the upcoming year which was of great joy to the manager allocating the funds.

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