The __________ budget includes the normal operating expenses expected in the daily functioning of the organization and has fairly detailed categories
a. operating
b. capital
c. program
d. asset
a
a. Correct: The operating budget refers to the budget of estimated revenues and expenses for the daily operation of an organization over a period of time, normally a one-year period. It includes the normal operating expenses expected in the daily functioning of the organization and has fairly detailed categories.
b. Incorrect: The capital budget refers to budgets developed for purchase of items that endure (e.g., equipment that lasts a number of years).
c. Incorrect: The program budget is a financial plan for a specific area of activity, a planned new activity or service, or a special project.
d. Incorrect: This is not one of the three budgets commonly referred to in discussions of organizational budgets in health care.
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