What is the primary focus of an operating budget?

The primary focus of an operating budget is on recurring day-to-day expenses. This budget is designed to outline the regular operational costs necessary for an organization to function on a daily basis. This includes expenses such as salaries, utilities, supplies, and routine maintenance.

Operating budgets help in predicting income and expenses over a specific period, usually a fiscal year, and facilitate effective financial management by ensuring that funds are allocated appropriately to cover these essential operational needs. By concentrating on day-to-day expenses, an operating budget allows organizations to maintain their ongoing activities and services, ensuring they can continue to operate smoothly and efficiently.

In comparison, other options like preventative maintenance costs, major project purchases, and long-term financial planning are considered separately and typically fall under different budget categories, as they involve more variable, one-time costs or extended timelines that don't reflect daily operations.