For an airline, which of the following would not be an operational budget? A cash receipts budget of flying consumers. A budget of planned air miles to be flown. A fuel budget. A materials budget for aircraft parts. A labor budget for flight crew.

Question

Business

Cruella

19 October, 12:17

For an airline, which of the following would not be an operational budget? A cash receipts budget of flying consumers. A budget of planned air miles to be flown. A fuel budget. A materials budget for aircraft parts. A labor budget for flight crew.

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Answers (2)

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Eve Mercer · Answer 1

A cash receipts budget of flying consumers.

Explanation:

Operational budget is defines as all the profits and expenses a business realises as a result of planning it's operations.

Usually an operational budget is set before activities begin, and is a target to be achieved.

For an airline cash receipts of flying customers is not a revenue realised as a result of planning operations, so this is the correct answer.

However a fuel budget, material budget for parts, and labour budget for flight crew are operational budgets.

Ryder Chandler · Answer 2

A cash receipts budget of flying consumers.

Explanation:

A cash receipts is the amount in an accounting period that is the money a company receives from the sales they make in previous and current times. A business usually takes some percentage of its sales in the quarter in which it makes them and receives the remaining portion in the next quarter. Therefore, the budgeted cash receipts are the amounts of cash they expect to receives based on the forecasted sales in your sales budget.