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Important Steps in the Operating Budget Process

Discuss the most important steps in the operating budget process. Why are these more important than the other steps?

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Hello Student,

In order to answer this question, the first thing you need to do is to define what an operating budget is; then look at the steps that are a part of the operating budget process; after which you will discuss the ones which you believe are the more important ones and why you think they are more important than the others.

Note the following excerpt:

"Operating budgets are carefully crafted budgets that focus on managing current expenses. This is different from other types of budgeting strategies that may include provisions for future transactions or the creation of additional expenses that are outside the scope of the basic budget. The focus of an operating budget is to ensure there are funds to maintain the continued operation of a business, and that those funds are distributed in the most cost-efficient manner."

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Solution Summary

This solution provides you with information about what an operating budget is. It then looks at the steps that are a part of the operating budget process and further points you to links which entails discussion as to the ones that are more important. All refences are provided in the solution.