In budgeting, which type of budget provides an overview of expenditures associated with operational activities?

The operating budget is designed specifically to provide a detailed overview of expenditures associated with day-to-day operational activities of an organization. It outlines expected revenues and allocates funds for various operational areas such as salaries, utilities, and materials, reflecting the ongoing costs necessary to run the organization efficiently.

By focusing on regular operational costs, the operating budget helps management plan for short-term financial obligations, ensuring that the organization can sustain its operations and meet its financial commitments without disruptions. This makes it an essential tool for managing cash flow and operational efficiency.

In contrast, the capital budget deals with long-term investments in physical assets like buildings and equipment, the development budget often focuses on new projects or initiatives, and the sector budget may pertain to specific departments or sectors within the organization, neither of which provide the broad operational expenditure overview that the operating budget does.