Which term describes a financial plan that estimates the revenue to be generated, the expenses to be incurred, and the profit, if any, for a specified time period?

• A. Operating Budget
• B. Organizational Culture
• C. Organizational Goal
• D. Labor Cost

Answer: (A)

A financial plan that estimates revenue, expenses, and profit for a specified period is called an operating budget. In hospitality, this defines expected sales from all streams (room revenue, food and beverage, services) and the costs needed to run daily operations—labor, cost of goods sold, utilities, and other operating expenses—to project the anticipated profit for that period. This is time-bound (monthly, quarterly, yearly) and used to guide staffing, purchasing, pricing, and financial performance.

Organizational culture describes values and norms that shape behavior, not a numeric forecast. Organizational goals are targets the organization aims to achieve, which may influence budgeting but are not themselves the financial plan. Labor cost is a component of expenses, not the entire plan, and it doesn’t alone project revenue or profit.