Operating budget
Generally, a budget covering operating expenses, for normal operations. Operating expenses can be budgeted (planned for) and accounted for on a monthly, quarterly, and/or annual basis. Operating budgets are usually fixed through a process different from that used on capital budgets (in some companies, all management above a certain level participate in the process). Operating budgets, once fixed, are usually not changed during the period—except maybe for emergency reductions following unexpectedly poor sales results or other disasters.
Operating budgets generally cover predictable, repeatable costs; items bought under an "expense budget" (as opposed to a capital budget) are not registered as capital assets and are not depreciated. That means, the company charges the full amount against income during that reporting period, and takes all tax consequences for it during that period.
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