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Managerial Accounting

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Define the Difference Between the Cash and Operating Budgets

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The cash budget is different from the operating budget because

A

the cash budget focuses on cash flows whereas the operating budget is based on accrual accounting.

B

the cash budget focuses on cash flows and the balance sheet, whereas; the operating budget focuses on the accrual-based​ balance sheet.

C

the cash budget is a schedule of expected cash receipts and disbursements whereas the operating budget is only a schedule of budgeted cost of goods manufactured.

D

the cash budget is a statement of expected cash flows whereas the operating budget is only a schedule of budgeted cost of goods manufactured.