CFM Exam Dumps | What is a short-term projection of all income and expenses during a given period (usually one year)?

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Question 97/122

What is a short-term projection of all income and expenses during a given period (usually one year)?

A. Combined budgeting

B. Fixed/variable budgeting

C. Operational budget

D. Capital budget

Correct Answer: C

An operational budget (C) is a short-term financial plan covering income and expenses for one fiscal year.
* It includes day-to-day operating costs, such as maintenance, utilities, and salaries.
* Why not other options?
* (A) Combined budgeting integrates multiple budgeting methods but is not specifically short- term.
* (B) Fixed/variable budgeting categorizes costs rather than providing a full financial projection.
* (D) Capital budgets focus on long-term investments and major asset purchases.

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