That should work, but prior to burning, you'd have to edit the CONFIG.SYS and AUTOEXEC.BAT files so that any references to A:\.. lead to D:\.. or wherever your optical drive is at... otherwise it might not load the necessary drivers.
Alternatively, booting from Win98 CDROM will function exactly the same as a bootable floppy.
But yeah, most burning software comes with a Create Bootable CD function, after which you can put whatever programs you want on it.