Companies typically produce three types of budgets: operational budgets, cash budgets, and capital budgets.

Expense budgets, a type of operational budget, typically describe fixed expenses rather than variable expenses.

Operational budgets can only show information by department or by line of business.

Operational budgets begin with a forecast of sales revenue and investment income.

Revenue budgets, a type of operational budget, indicate the amount of income from operations that a company received from the previous budget period