In planning your operating budget for the next fiscal year, what should NOT be included?

Operating budgets focus on recurring costs related to facility maintenance and operation. The allowance for an overhaul of motors is a capital expense, not an operating expense.

Why the other options are correct to include in an operating budget:

(A) Quarterly belt and filter changes are part of routine maintenance.

(B) Preventive maintenance during shutdown ensures ongoing operational efficiency.

(C) Electrical utility costs are an essential operational expense.

Capital expenditures, such as overhauls or major system replacements, belong in a capital improvement budget​.