Fourth step in development of operating budget is to

The correct answer is: B. evaluate alternatives

The fourth step in developing an operating budget is to evaluate alternatives. This involves comparing the different options available to the organization and selecting the one that is most likely to achieve the desired results. The evaluation should take into account a number of factors, including the cost of each option, the potential benefits, and the risks involved.

The other options are incorrect because:

• Option A: choose alternatives is the first step in developing an operating budget.
• Option C: efficiency improvements is the third step in developing an operating budget.
• Option D: predicted improvements is not a step in developing an operating budget.