Regular expenses like salaries and facility maintenance costs are part of a operating budget. The expenses and earnings from the company's ongoing operations are included in the operating budget. The COGS as it is more commonly known, as well as revenue or income are the main focus of the operational budget.
COGS is the price of production-related direct labor and direct materials. The overhead and administrative costs related specifically to producing the goods and rendering the services are also shown in the operational budget. However, the long-term financing and the capital expenses will not be included in the operating budget.
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