Which type of budget focuses on daily operating expenses?

The operational budget is designed specifically to focus on the daily operating expenses of an organization, such as salaries, utilities, supplies, and other costs necessary for the day-to-day functioning of the laboratory or facility. This type of budget is crucial for ensuring that there are sufficient funds allocated to maintain ongoing operations and to plan for the financial resources required in the short term.

An operational budget typically outlines expected revenues and expenditures over a specific period, allowing managers to monitor performance and make adjustments as needed to stay within financial constraints. By providing a clear overview of regular operating costs, this budget type aids in financial planning and helps to prioritize spending in alignment with operational goals.

In contrast, a capital budget focuses on long-term investments in assets, such as equipment or infrastructure improvements, rather than on daily expenses. A variance budget is typically used to assess the differences between expected and actual performance rather than planning for day-to-day expenditures. A zero-based budget requires every expense to be justified for each new period, rather than simply adjusting the previous year’s budget figures, and is not specifically targeted at operational costs alone.