What is the financial plan of an operation for a specified period of time called?

The financial plan of an operation for a specified period of time is referred to as the operating budget. This budget serves as a detailed projection of the anticipated revenues and expenses that an organization expects to incur during that period, typically a year. It outlines the financial goals and helps in managing the resources necessary to achieve those goals.

Creating an operating budget involves estimating sales, identifying the costs associated with producing goods or services, and planning for general operating expenses, such as payroll, utilities, and supplies. This comprehensive plan allows management to allocate resources efficiently, monitor actual performance against the budget, and make informed decisions to ensure the organization's financial stability and profitability.

In contrast, other types of budgets, such as the capital budget, focus on long-term investments in assets versus day-to-day operational costs. The marketing budget is specifically designed for expenditures related to promotional activities and customer outreach. Cash flow projections analyze the inflows and outflows of cash, ensuring that the operation has enough liquidity to meet its short-term obligations but do not encompass the full spectrum of operational expenses and revenues like the operating budget does.