Which of the following is typically included in the operating budgets of a company?

• A. Dividend distribution schedule
• B. Cash receipts from financing activities
• C. Sales budget
• D. Capital expenditures budget

Answer: (C)

Verified step by step guidance

1. Understand the concept of operating budgets: Operating budgets are financial plans that focus on the day-to-day operations of a company, typically including revenues and expenses related to core business activities.
2. Identify the components of operating budgets: These budgets often include items such as the sales budget, production budget, direct materials budget, direct labor budget, and overhead budget. They are distinct from financial budgets, which focus on financing and investing activities.
3. Analyze the options provided: Dividend distribution schedule and cash receipts from financing activities are part of financial budgets, not operating budgets. The capital expenditures budget is part of the investing budget, which is also not included in operating budgets.
4. Focus on the sales budget: The sales budget is a key component of operating budgets because it forecasts the expected revenue from sales, which serves as the foundation for other operational planning, such as production and inventory management.
5. Conclude that the correct answer is the sales budget, as it aligns with the purpose and scope of operating budgets, which are centered on the company's core operational activities.