Assume Mark Fisher was recently hired as an intern at overstock.com, Inc. an online retailer of price-competitive furnishings and accessories. After recently finishing a course in management accounting, Mark asks his manager if he can see a copy of the current year’s operating budget. His manager replies that as a newly publicly-traded company, they are too busy focusing on day-to-day operations to take the time to create a budget.
Discuss some ways that an operating budget might benefit overstock.com, Inc.