A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?

A. Capital cost of a new collection vehicle

B. Depreciation of the machinery

C. Operatives wages

D. Fuel for the collection Vehicles

Answer: Option B

Solution(By Examveda Team)

A Local Authority is preparing cash Budget for its refuse disposal department. Depreciation of the machinery would not be included in the cash budget. Depreciation is not a cash item and would be excluded from the cash budget.