Operating Budget

The Operating Budget includes the Budgeted Income Statement and all the budgets that support it.

It contains the :

• Sales budget
• Production budget
• Direct materials budget
• Direct labor budget
• Employee fringe benefits budget
• Manufacturing overhead budget
• Ending finished goods inventory budget
• Cost of goods sold budget
• Nonmanufacturing budget
  ■ Research and development budget
  ■ Design budget
  ■ Marketing budget
  ■ Distribution budget
  ■ Customer service budget
  ■ Administrative budget
• Pro forma income statement