Your company is upgrading the breakroom and kitchen. It is going to include an expresso machine, a fridge with compartments for each employee, a sink, microwave, toaster oven, tables chairs, a rock wall, snacks for everyone, and maybe some other bells and whistles. Your managers think that by updating this area employees will not take as long of lunches. They understand this purchase will be at a cost. You are tasked with considering two different options and presenting them to management. Use a 5% interest rate. Walmart Kit Target First Cost $40,000 $65,000Annual Maintenance Cost $10,000 $12,000Salvage Value $12,000 $25,000Life Years 3 6 a. Using NPW (Net Present Worth Analysis) analysis determine which kitchen kit you should chooseb. Using EUAW (Equivalent Uniform Annual Worth) analysis determine which kitchen kit you should choose. C. You really want the Target kit because it looks nicer and has more bells and whistles. You are willing to keep these products around for longer and therefore extend the lives of these products. Perform the analysis to show that the Target option is the better choice. d. Now from your analysis in part b think about how ethical presenting this information to management would be. Write 2-3 sentences about how you would present this information in a way that showed your bias. You will be graded on your ability to consider two options in an ethical comparison and how you perceive your bias.

Answers

Answer 1

Answer:

1. In a Year 20,367 20,017

2. In a Year 21,333 21,917

3. In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,

4.Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .

Explanation:

1. Using NPW Analysis

Walmart Kit Target

Intial Cost 40000 65000

AMC 10000 12000

Salvage Value 12000 25000

Life Years 3 6

Total Cost

Intial Cost 40000 65000

Less Salvage 12000 25000

Balance 28000 40000

5% Interest 6000 19500

AMC PV 2.71 5.05

Amc 27100 60600

Total Cost 61100 120100

In a Year 20,367 20,017

2. Using EUAW Analysis

Walmart Kit

Target

Intial Cost 40000 65000

AMC 10000 12000

Salvage Value 12000 25000

Life Years 3 6

Total Cost

Intial Cost 40000 65000

Less Salvage 12000 25000

Balance 28000 40000

5% Interest 6000 19500

AMC 30000 72000

Total 64000 131500

In a Year 21,333 21,917

In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,

Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .

Hence Target product will be the best option we would advice the management to go for.


Related Questions

accurate statement regarding premiums and deductibles?

Answers

A premium is the quantity of money paid to an insurance company by a person or company in order to purchase or maintain an insurance policy.

A deductible is the amount of money that an individual or corporation must pay out of pocket before their insurance coverage begins to pay for a claim.

A greater deductible usually results in a lower premium, while a lower deductible usually results in a higher premium. The decision between a greater or lower deductible and premium is determined by an individual's or business's financial status and risk tolerance.

As a result, the significance of the regarding premiums and deductibles are the aforementioned.

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3. When an account such as “Accounts Payable” has a credit balance and a credit entry is posted to the account, the account balance is:

a. Increased
b. Decreased
c. Can be increased or decreased
d. None of the above

Answers

I think the answer is C. Can be increased or decreased

1. Small firms or firms with a unique product may choose to focus on a single segment and pursue a(n) _________ targeting strategy.A.positioningB. nicheC. undifferentiatedD. mass marketing2. Which of the following is NOT identified as one of the factors that should influence the selection of segments for target markets?A. Characteristics of CollaboratorsB. Characteristics of the CompetitionC. Company FitD. Characteristics of the Segment

Answers

1. Small firms or firms with a unique product may choose to focus on a single segment and pursue a niche targeting strategy. So the option B is correct.

2. Characteristics of Collaborators is NOT identified as one of the factors that should influence the selection of segments for target markets. So the option A is correct.

1. This approach allows them to focus their resources on a specific target market, which may lead to more effective marketing, higher sales, and higher profits. Niche targeting strategies include segmentation by demographics, lifestyle, geography, or psychographics.

Firms can also use a combination of these strategies to reach their target market. This approach can be beneficial for small firms because it enables them to concentrate their marketing efforts on a small, specific segment of the market while still having a chance to reach a larger audience. So the option B is correct.

2. Characteristics of collaborators is indeed one of the factors that should influence the selection of segments for target markets. It is important to consider the characteristics of potential collaborators when selecting target markets, as different types of collaborators may be better suited for different markets. Additionally, understanding the characteristics of collaborators can help to identify potential new segments that may be more profitable or attractive for collaboration. So the option A is correct.

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which statement is true about a non-qualified variable annuity?
a contributions to the contract are tax-deductible
b investments held in the separate account grow tax-deferred
c withdrawals from the contract prior to retirement age are tax-free
d withdrawals from the contract after retirement age are tax-free

Answers

The statement that is true about a non-qualified variable annuity is b) Investments held in the separate account grow tax-deferred.

How are non-qualified variable annuity treated ?

Contributions to a non-qualified variable annuity are made with after-tax dollars and are not tax-deductible. Withdrawals from the contract prior to retirement age may be subject to taxes and a 10% penalty.

However, investments held in the separate account grow tax-deferred, which means that taxes are not owed on the investment gains until withdrawals are made from the contract. Withdrawals from the contract after retirement age are also subject to taxes, but they may be taxed at a lower rate than during the accumulation phase.

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Dynamo Industries sold 80 packages of fireworks at a market price of $30 per package. If the firm earned a $2,000 profit, then what is the firm's average total cost?

Answers

An average package of fireworks from Dynamo Industries costs $5 overall. Since we know the profit was $2,000, we can deduct that sum from the entire amount of total revenue :

What is the formula for total revenue?

Total revenue is crucial because it provides organizations with a broad grasp of the link between pricing and the demand from customers for more units of a certain product anywhere at given time. The simple method for calculating total revenue is: Price * Quantity Sold.

The term "total revenue" has what meaning?

A company's overall sales is the sum of money it earns through the sale of its products and services. In other words, businesses utilize this statistic to assess the success of their primary revenue-generating activities.

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this group of user of accounting information invested resources to the company with hopes of earning acceptable returns

Answers

Explanation:

sorry you question is not fully stated

NASAA's Model Rule on Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers deems all of the following as unethical practices for investment advisers EXCEPT A) inability or unwillingness to disclose sources of additional fees received from those other than the customer in connection with providing advisory services to that client B) performing the initial trades in a new discretionary account with oral authorization C) charging advisory fees that are significantly higher than those charged by other advisers for similar services in that state D) recommending a security based on a rumor

Answers

I don’-t kn-ow I’m sorry but thanks

Here are the comparative income statements of Ayayai Corp..
AYAYAI CORP.
Comparative Income Statement For the Years Ended December 31
2017 2016
Net sales $632,600 $521,900
Cost of goods sold 463,600 410,400
Gross Profit 169,000 111,500
Operating expenses 79,300 47,200
Net income $ 89,700 S64,300
Prepare a horizontal analysis of the income statement data for Ayayal Corp, using 2019 as a base. (If amount and percentage are a decrease show the numbers as negative, eg -55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, eg. 12.1%.)

Answers

Answer:

Ayayai Corp.

Horizontal Analysis:

                                          2020            Increase                 2019

Net sales                     $632,600  $110,700    21.2%     $521,900

Cost of goods sold       463,600     53,200    13.0%        410,400

Gross Profit                   169,000     57,500    51.6%          111,500

Operating expenses      79,300      32,100   68.0%          47,200

Net income                 $ 89,700     25,400   39.5%        $64,300

Explanation:

a) Data and Calculations:

AYAYAI CORP.

Comparative Income Statement For the Years Ended December 31

                                          2020             2019

Net sales                     $632,600     $521,900

Cost of goods sold       463,600        410,400

Gross Profit                   169,000          111,500

Operating expenses      79,300         47,200

Net income                 $ 89,700       $64,300

Percentage increase or decrease = (Increase/Decrease)/Base Year's Value

Write an elevator pitch for someone that will start their own beauty salon/barber shop

Answers

An effective technique to introduce your company's goals and pique interest in your goods or services is through an elevator pitch. A compelling pitch will draw in potential.

Product: What does that mean?

The object being sold is referred to as a product. A service or even an object both qualify as products. It might take on a physical, virtual, or cyber form. Every product has a cost associated with it, and each one has a price.

Is a remedy a thing?

The easiest way to distinguish between a product and a solution is to say that a product is what you have made and what it is capable of. A business outcome who offers your clients quantifiable value is a solution.

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Flounder Corporation has outstanding 1,700 $1,000 bonds, each convertible into 70 shares of $10 par value common stock. The bonds are converted on December 31, 2020, when the unamortized discount is $26,900 and the market price of the stock is $21 per share.

Required:
Record the conversion using the book value approach.

Answers

Answer:

Dr Bonds Payable 1,700,000

Cr Discount on Bonds Payable 26,900

Cr Common Stock 1,190,000

Cr PIC in excess of Par 483,100

Explanation:

Flounder Corporation Record of conversion using the book value approach

Dr Bonds Payable 1,700,000

(1,700 bonds x $1000)

Cr Discount on Bonds Payable 26,900

Cr Common Stock 1,190,000

(70 shares x $10 x 1,700 bonds)

Cr PIC in excess of Par 483,100

Calculation of PIC in excess of Par

Bonds Payable 1,700,000

Less:

Discount on Bonds Payable (26,900)

Common Stock (1,190,000)

=483,100


A food worker needs to thaw
and cook a package of frozen
bacon.
How should the food worker
safely thaw the bacon?
a. Submerge the bacon in a bowl of hot
water
b. Submerge the bacon under cold,
running water
c. Microwave the bacon and put it in the
refrigerator
d. Microwave the bacon and cool it to
room temperature

Answers

Answer:

I think the answer is a) Submerge the bacon in a bowl of hot water

Explanation:

I hope this helps.

Here´s more to the answer:

Fill your sink/bowl pretty full with hot tap water. Then add the package of bacon. After about 10 minutes, drain the water and add new hot water. The bacon will probably be defrosted 10 minutes later.


Which statement describes why the people in a nation with a command
economy might resist a shift to a free market economy?
A. People who hold political power are threatened by fundamental changes.
B. Workers are reluctant to give up their participation in a classless society.
C. Workers are reluctant to accept complete government control of their economy.
D. Factory and business owners are reluctant to place their capital under worker
authority Xd

Answers

Answer:

People who hold political power are threatened by fundamental changes.

Explanation:

People who hold political power are threatened by fundamental changes  is the statement describes why the people in a nation with a command economy might resist a shift to a free market economy. Thus, option (a) is correct.

What is economy?

The mechanism through which a nation or region organizes its money, industry, and trade is concerned to as its “economy.” The economy is the important part of the country. The primary sector of the economy is the industrial sector and agriculture sector. The family (consumption) and company (product sales) are both parts of the economy.

According to the population is the important part of the economy. The individual citizen in the nation is a command economy might resist a shift to a free market economy. A people are the special rights to hold political power are imperiled by fundamental changes.

As a result, the significance of the economy are the aforementioned. Therefore, option (a) is correct.

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An implied power is one that:
A: is clearly outlined in the Constitution.
B: gives the Supreme Court power to revise the Constitution.
C: overrules the wording of the Constitution.
D: is suggested by the Constitution, but not specifically stated.

Answers

Answer:

Option D

Explanation:

Implied powers are powers that aren't exactly stated in the Constitution but are assumed because of other powers that are similar in ways of the following are stated in the constitution. Which means your answer is option D or "is suggested by the Constitution, but not specifically stated." One of the most common examples of an implied power, is the government's ability to collect taxes. Although not specifically stated in the Constitution is it easy to assume speaking how the government has the power to start war, and war isn't cheap you need funds.

Hope this helps.

An implied power is suggested by the Constitution, but not specifically stated. The correct option is d.

A constitution is the collection of fundamental principles and established precedents that serve as the legal foundation of a polity, organisation, or other form of body and typically dictate how that entity is to be governed. When these ideas are enshrined in a single document or group of legal papers, the documents are said to embody a written constitution; when they are enshrined in a single complete document, the document is said to embody a constitution that has been The United Kingdom's Constitution is an example of an uncodified constitution; it is written in various basic Acts of a legislature, court cases, or treaties.

Constitutions apply to various levels of organisations, ranging from sovereign countries to corporations and unincorporated societies.

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You have 24 cups of milk.
You need 1.25 cups to make one serving of deep-fried chicken.
How many servings can you make? Whole servings only - round down
rather than using partial servings.
Answer:
to make a servings of roast beef gravy.

Answers

Answer:

19.2 serving

Explanation:

Because if you have 24 cups of milk and need 1.25 cups to make 1 serving we would have to divide.

24 cups of milk - 1.25 cups of milk per serving = 19.2

Each of these is a key element of goal setting:
specific
intelligent
time-bound
measurable

Answers

Answer: Specific, Time-bound, measurable

Explanation: Trust me ;)

Which financing is also known as “risk capital”?
A.
mezzanine loans
B.
subordinate debts
C.
equity capital
D.
senior debts
E.
bonds

Answers

the answer is C: equity capital

Sunland Company is considering these two alternatives for financing the purchase of a fleet of airplanes. 1. Issue 60,000 shares of common stock at $42 per share. (Cash dividends have not been paid nor is the payment of any contemplated.) 2. Issue 12%, 10-year bonds at face value for $2,520,000. It is estimated that the company will earn $819,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 91,100 shares of common stock outstanding prior to the new financing. Determine the effect on net income and earnings per share for issuing stock and issuing bonds. Assume the new shares or new bonds will be outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. $2.66.) Plan One Issue Stock Plan Two Issue Bonds select an option $enter a dollar amount $enter a dollar amount select an option enter a dollar amount enter a dollar amount select an option enter a total of the two previous amounts enter a total of the two previous amounts select an option enter a dollar amount enter a dollar amount select an option $enter a total of the two previous amounts $enter a total of the two previous amounts select an option enter a number enter a number select an option $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places

Answers

Answer:

Issuing Stock Issuing Bonds

Net income $573,300 $361,620

Earnings per share $3.79 $3.97

Explanation:

Calculation to determine the effect on net income and earnings per share for issuing stock and issuing bonds.

ISSUING STOCK ISSUING BONDS

Income before interest and taxes

$819,000 $819,000

Interest ($2,520,000 x 12%) $0 $302,400

Income before taxes $819,000 $516,600

($819,000-$302,400=$516,600)

Income tax expense (30%) $245,700 $154,980

(30%*$819,000=$245,700)

(30%*$516,600=$154,980)

NET INCOME $573,300 $361,620

($819,000-$245,700=$573,300)

($516,600-$154,980=$361,620)

Outstanding shares 151,100 91,100

(60,000shares+91,100 shares=151,100)

Earnings per share $3.79 $3.97

($573,300/151,100=$3.79)

($361,620/91,100=$3.97)

Therefore the effect on net income and earnings per share for issuing stock and issuing bonds are :

Issuing Stock Issuing Bonds

Net income $573,300 $361,620

Earnings per share $3.79 $3.97

List the entities and personnel involved in an Automobile's Repair Shop's "supply chain" 1. How do you think these do or should all work together? 2. How do you think it could be improved?

Answers

The entities and personnel involved in an Automobile's Repair Shop's "supply chain are;

the parts manufacturers auto mechanics electricians

They should work together so that the final consumer who were the owners of the automobiles can get their cars repaired.

It can be improved if the parts manufacturers make the parts to be available at cheaper rate for the shops that are dealing with the mechanical work.

What is supply chain?

A supply chain can be described as the network of all the individuals, as well as entity that   are responsible for the creation and sale of a product.

For instance the Automobile's Repair Shop's  encompass the activities of the the parts manufacturers ,  auto mechanics and  electricians which are chains to be followed in order to get the automobiled repaired.

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Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling price $ 122Units in beginning inventory 290Units produced 6,600Units sold 6,590Units in ending inventory 300Variable costs per unit:Direct materials $ 42Direct labor $ 26Variable manufacturing overhead $ 2Variable selling and administrative expense $ 21Fixed costs:Fixed manufacturing overhead $ 151,800Fixed selling and administrative expense $ 46,130The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.Required:a. Prepare a contribution format income statement for the month using variable costing.b. Prepare an income statement for the month using absorption costing.

Answers

Answer:

Part a

Nelter Corporation

Contribution format income statement for the month using variable costing

Sales ($ 122 x 6,590)                                                           $803,980

Less Cost of Goods Sold

Beginning Inventory                                          $20,300

Add Cost of Goods Manufactured                 $462,000

Less Ending Inventory                                      ($21,000)    ($461,300)

Contribution                                                                           $342,680

Less Expenses

Selling and administrative expense :

Variable  ($21 x 6,590)                                    $138,390

Fixed                                                                   $46,130

Fixed manufacturing overhead                      $ 151,800     ($336,320)

Net Income (Loss)                                                                      $6,360

Part b

Nelter Corporation

Income statement for the month using absorption costing

Sales ($ 122 x 6,590)                                                           $803,980

Less Cost of Goods Sold

Beginning Inventory                                          $26,970

Add Cost of Goods Manufactured                  $613,800

Less Ending Inventory                                     ($27,900)    ($612,870)

Gross Profit                                                                              $191,110

Less Expenses

Selling and administrative expense :

Variable  ($21 x 6,590)                                    $138,390

Fixed                                                                   $46,130    ($184,520)

Net Income (Loss)                                                                    $6,590

Explanation:

Variable Costing Calculations

Unit Product Cost = Variable Manufacturing Costs

                              = $ 42 + $ 26 + $ 2

                              = $ 70

Cost of Goods Manufactured = 6,600 x $ 70 = $462,000

Opening Inventory = 290 x $ 70 = $20,300

Ending Inventory =  300 x $70 = $21,000

Absorption Costing Calculations

Unit Product Cost = Variable Manufacturing Costs

                              = $ 42 + $ 26 + $ 2 + ($ 151,800 ÷ 6,600)

                              = $ 42 + $ 26 + $ 2 + $23

                              = $93

Cost of Goods Manufactured = 6,600 x $93 = $613,800

Opening Inventory = 290 x $93 = $26,970

Ending Inventory =  300 x $93 = $27,900

Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $420,000 on sales of $1,500,000. The company’s average operating assets for the year were $1,700,000 and its minimum required rate of return was 15%.



Required:

Compute the company’s residual income for the year.

Answers

Answer: 165,000

Explanation:

To compute the company’s residual income for the year, we can use the formula:

Residual Income = Net Operating Income – (Minimum Required Rate of Return x Average Operating Assets)

Given: Net Operating Income = $420,000 sales = $1,500,000

Average Operating Assets = $1,700,000

Minimum Required Rate of Return = 15% = 0.15

Residual Income = Net Operating Income – (Minimum Required Rate of Return x Average Operating Assets)

Residual Income = $420,000 – (0.15 x $1,700,000)

Residual Income = $420,000 – $255,000

Residual Income = $165,000

Therefore, the company’s residual income for the year was $165,000.

Sam burned his hand on the stove. The burn was so bad that it permanently scarred his hand and made it hard to grip things. A doctor told him that he could fix the hand through a simple “skin-grafting” procedure. Sam and the doctor entered into a contract to have the surgery for $1,200. After the surgery, Sam’s hand worked perfectly, but he grew hair out of the palm of his hand. Even though he tried waxing his hand and using Nair, he was not able to stop the hair from growing. Did the doctor breach the contract by giving Sam a hairy hand? If so, why, and what should the court do about it?

Answers

The doctor did not read my contract for giving Sam a hairy hand because he did fix his hand and that was what was in the contract there were risks for skin graphing and to get that procedure done he would have to put the risks in a contract

Why are credit card companies more willing to offer a young person a secured credit card than an unsecured card?

Answers

Answer: I work at a bank and we offer young person a secured card than unsecured card because people tend to steal a young persons card more than a middle aged man or woman, because people think it is just more effortless I guess.

Explanation:

Incentive pay based on the quality of work done, years of service, or a company's sales:

a:net pay
b:wages
c:salary
d:bonus​

Answers

The correct answer is
D) bonus

What is the master plan of a construction project called?

Answers

Answer:

Project Scheduling is known as construction project.

Explanation:

please mark as brainlist answers

Question - 4 (4-2003) An industrial product may be manufactured by two methods of production Using Method X, fixed costs are £5,500,000 per period and variable costs are £535 per unit of product. Using Method Y, fixed costs are £8,260,000 per period and variable costs are £420 per unit of product. (a) Calculate the level of output per period for which the total costs are the same for the two methods of production. Produced by Method X the product has unit costs during a period as follows: Components £275 Labour £180 Production overheads £85 Distribution expenses £120 The figures include variable costs and apportioned fixed costs. (b)Calculate the number of units produced in the period. (c) Compare the total costs of Methods X and Y at the level of output in (b) above.​

Answers

(a) To calculate the level of output per period for which the total costs are the same for the two methods of production, we can set the total costs of each method equal to each other and solve for output.

Code snippet
Total cost of Method X = Total cost of Method Y

(5,500,000 + 535x) = (8,260,000 + 420y)

535x = 8,260,000 - 5,500,000

535x = 2,760,000

x = 5,144
Therefore, the level of output per period for which the total costs are the same for the two methods of production is 5,144 units.

(b) The number of units produced in the period is given as 5,144 units.

(c) The total costs of Methods X and Y at the level of output in (b) above are as follows:

Code snippet
Method X:

Total cost = (5,500,000 + 535 * 5,144) = £29,078,440

Method Y:

Total cost = (8,260,000 + 420 * 5,144) = £34,055,680

As you can see, the total cost of Method X is lower than the total cost of Method Y at the level of output in (b) above. This is because Method X has lower variable costs than Method Y.

The best way to start a statement on your résumé is with _____. a. “I” or “My” b. a noun c. an active verb d. an adjective Please select the best answer from the choices provided A B C D

Answers

The best way to start a statement on your résumé is by using an active verb.

What is a Résumé?

This is referred to a document that summarizes work experience, educational background, and special skills of individuals.

A résumé starts with an active verb as it helps to show the necessary actions within a sentence thereby making option C the most appropriate choice.

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What will produce more accurate results when giving a survey?
A. Using the word "frequently" in a question
B. Creating face-to-face interviews
C. Adding boxes to check for answers
D. Creating an open questions

Answers

Answer:

Option B; Creating face-to-face interviews

Explanation:

Research has shown that face-to-face interviews tend to produce more accurate results when giving a survey. So the correct answer is option B.

1. By giving yourself a safety cushion on all sides of the vehicle you improve your ability to? 1. stop 2. maneuver 3. think 4. all of the above

Answers

Answer: 4

Explanation: All of the above

The inventory valuation method that results in the lowest taxable income in a period of inflation is:________

s. LIFO method.
b. FIFO method.
c. Weighted-average cost method.
d. Specific identification method.
e. Gross profit method.

Answers

Answer:

A

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

Inflation refers to a persistent rise in general price levels.

In a period of inflation, cost of inventory keep rising. So, the most recently purchased inventory would have the highest price. The LIFO method would result in a higher cost of good sold and this depresses profit and also leads to a lower taxable income

The operating budget provides a roadmap for financial plans for a short-term, future period. What is a typical “future period” for an operating budget?

Answers

An operating budget is a financial statement that outlines the organization's expenditures and revenues for a specific period.

The operating budget is typically for a fiscal year, which is usually twelve months. The future period for an operating budget is usually a fiscal year or less than a year. The operating budget is critical because it establishes guidelines for financial activities and operations in an organization. It provides a roadmap for financial plans for a short-term, future period, which typically begins on January 1st and ends on December 31st.

An organization creates an operating budget to aid in the allocation of resources and expenditures to achieve its objectives for a given period. A typical operating budget is for a fiscal year. A fiscal year is the period when an organization prepares its financial statements. It is usually 12 months, but it may be shorter or longer depending on the organization. An operating budget typically covers one fiscal year; however, it may be longer or shorter based on the organization's preferences.

The future period for an operating budget is frequently updated to reflect the company's current situation and financial standing. It takes into account the actual results of the previous period and the estimated expenditures and revenues for the upcoming year to develop the operating budget for a future period.

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