An operating budget typically includes:

An operating budget is primarily focused on the financial resources needed for the day-to-day functioning of a business. It encompasses all revenue and expenses directly associated with normal operations, providing a comprehensive view of how much money the organization anticipates earning and spending over a specific period, usually a year.

This budget includes projections for sales, cost of goods sold, and operating expenses like wages, rent, and utilities. By understanding these revenues and expenses, businesses can analyze their operational efficiency, make informed financial decisions, and ensure that resources are allocated appropriately to meet operational goals.

Options that pertain to long-term capital expenditures, inventory management levels, and non-operating income do not fall under the scope of an operating budget. Long-term capital expenditures usually reside in capital budgets since they involve significant investments in fixed assets. Inventory management might be monitored within the operations but is not confined strictly to revenue and expense calculations within the operational budgeting framework. Non-operating income, such as investment income or sale of assets, is also excluded, as it does not relate to the primary functions of the business operation. Hence, the choice that best reflects the purpose and contents of an operating budget is the one focusing on all revenue and expenses for operations.