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Operating budget

Income and expenditure from daily business From Wikipedia, the free encyclopedia

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The operating budget contains the revenue and expenditure generated from the daily business functions of the company.[1][2] It concentrates on the operating expenditures — the cost of goods sold, the cost of direct labour and direct materials that are tied to production; as well as the overhead and administration costs tied directly to manufacturing the goods and providing services.

The operating budget will not contain capital expenditures and long-term loans.

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