The ______ budget includes activities and planned expenditures that occur outside of production.

The selling, general, and administrative budget is the correct choice as it encompasses all planned expenditures associated with the operations of a business that are not directly tied to the production of goods or services. This budget includes costs related to selling activities, administrative expenses, and general overhead costs that are essential for the daily functioning of the business but do not involve direct production processes.

In contrast, the sales budget typically focuses on projected sales volume and revenue generation, the overhead budget covers costs associated with production that are not directly linked to labor or materials, and the labor and materials budget specifically addresses expenses related to the workforce and raw materials required for production activities. These other budgets do not encompass the broader range of activities and expenses that fall under selling, general, and administrative functions, which can include marketing, office expenses, utilities, and other operational costs vital to running the business effectively.