Which of the following best describes an operational budget?

An operational budget is primarily designed to outline the expected revenues and expenses associated with the daily functioning of an organization. It serves as a financial plan that details how resources will be allocated to meet the ongoing costs of operations, such as salaries, utilities, supplies, and other day-to-day expenses. By focusing on the regular income and operational outlays, an operational budget aids in managing day-to-day activities effectively, ensuring that an organization remains financially stable throughout its operations.

This budget is essential for making informed decisions about resource allocation, setting financial goals, and monitoring performance against those goals. It helps administrators track how effectively they are managing expenditures and generating revenue, which is crucial for maintaining a sustainable operation in settings such as assisted living facilities. The emphasis on daily expenses and revenues distinctly characterizes the operational budget compared to other types, which may focus on longer-term financial strategies or specific projects.