Question

Which of the following is NOT included in the budget for a business?

• A. Total cash outflow and total cash inflow
• B. Operating expenses
• C. Setup cost
• D. None of the above

Answer 1

The correct option is C

Setup cost

Cash inflows and cash outflows are used to calculate the budget. Operating expenses are a part of the total cash outflow. Setup cost is incurred for starting the business and hence is excluded in the budget calculations. So Option C is the right answer.