ESB Certification Practice Exam 2025 – Complete Study Resource

An operating budget focuses on the revenues and expenses expected within a specific period, typically a year. It is used to manage day-to-day operations and can include costs such as salaries, rent, utilities, and maintenance of equipment. Depreciation on equipment is a critical component of an operating budget as it represents the allocation of the cost of an asset over its useful life. This non-cash expense allows a business to account for the wear and tear of its equipment and assists in more accurately determining profit margins and future resource allocation.

In contrast, personal savings measure an individual's financial position and are not part of business operating expenses. Future investment plans involve considerations beyond the scope of the operating budget, focusing instead on strategic planning over broader periods. Sole proprietorship tax filings relate to tax obligations rather than operational expenses. Therefore, depreciation on equipment is the most appropriate item to include in an operating budget.