Operating Budget

An Operating Budget is a financial plan that outlines expected revenue and operating expenses over a specific period, typically a fiscal year. It forecasts income, direct costs, indirect costs, and operational overhead, serving as a baseline for managing business operations and financial performance.

An operating budget usually includes:

• Sales forecasts

• Production costs

• Administrative and operational expenses

• Marketing and advertising costs

Businesses rely on operating budgets to allocate resources, set financial targets, and evaluate performance against expected outcomes.