1.
Which of the following is considered an operating budget? O The prepayments budget. O The
debt service budget. The debt service budget. O The customer service budget. O The capital
expenditures budget. The capital expenditures budget.
Solution
Solution:-
1. c The customer service budget
Explanation:-
The Operating Budget is the budget made for the operational activities of a company like sales
budget, variable and fixed cost budget, Interest Budget, etc. Thus, the correct option is Option c,
Customer Service Budget.
2. d. The Capital Expenditure budget
Explanation:-
Capital expenditure budget is the financing decision all budgets related to capital expenditure are
of financing nature. Thus, Option D.
Please Rate or comment if you have any doubt regarding this solution.