Which of the following is NOT a common type of budget?

The choice of "Net budget" is accurate because it is not commonly recognized as a standard type of budget within the field of management accounting. Instead, typical budgets used in organizations include operating budgets, which detail the revenue and expenditures for daily operations; capital budgets, which focus on long-term investments and projects; and flexible budgets that adjust based on actual levels of activity, allowing for a more responsive financial management approach.

Operating budgets are essential for outlining the income and expenses necessary to run the business effectively over a specific period, while capital budgets help organizations plan for significant expenses or investments that will benefit the company in the long term. Flexible budgets add a layer of adaptability, enabling businesses to manage costs more effectively in varying levels of production or sales. Understanding these standard budgeting approaches is crucial for effective management accounting practices.