which one of these categories would most likely be found in the operating budget of a day care center?
A. Loan payments
B.Tables and chairs for classrooms
C.Deposits for utility services
D. Desks and chairs for the office
C.
I disagree. We only pay one deposit for each utility service.
Is it A?
You're right.
In order to determine which category would most likely be found in the operating budget of a day care center, we need to understand the purpose of an operating budget. An operating budget is a financial plan that outlines the expenditures and revenues of a business or organization over a specific period of time, usually one year. It includes all the day-to-day expenses that are necessary to keep the business operating.
Now let's analyze each option:
A. Loan payments: Loan payments typically refer to the repayment of borrowed money. While a day care center might have loans, loan payments are not considered day-to-day operating expenses, as they fall under long-term liabilities rather than operating costs.
B. Tables and chairs for classrooms: This expense is related to the acquisition of furniture for the classrooms. While it is necessary for the operation of the day care center, this type of expenditure would usually fall under the category of capital expenditures or fixed assets, not the operating budget.
C. Deposits for utility services: Utility services, such as electricity, water, and gas, are essential for the day-to-day operation of a day care center. Deposits for utility services, therefore, would typically be an operating expense and thus most likely be found in the operating budget.
D. Desks and chairs for the office: Similar to option B, while office furniture is essential for the operation of the day care center, these costs would usually be classified as capital expenditures or fixed assets and not be included in the operating budget.
Therefore, out of the given options, C. Deposits for utility services would most likely be found in the operating budget of a day care center.