The ___________ budget focuses on how much is spent and for what purpose, rather than the activity affected.

• A. Strategic
• B. Line-item
• C. Capital
• D. Operational

Answer: (B)

Line-item budgeting organizes the budget by individual expenditures and their specific purposes, listing each item (like salaries, supplies, equipment) with a precise amount. This makes the focus the amount spent and the purpose behind each spend, rather than tying money to a particular activity or program. It supports detailed cost control and accountability for each category, since you can compare actual costs against the authorized line items.

In contrast, other budgeting styles shift the focus toward different goals: capital budgeting centers on long-term investments in assets; operational budgeting emphasizes the costs of day-to-day activities or programs; strategic budgeting arranges resources to advance broad goals and outcomes. Because the question asks for a format that concentrates on how much is spent and for what purpose, rather than on the activity itself, the line-item approach is the best fit.