Board of Certification for the Athletic Trainer (BOC) Practice Test

Which budget type requires listing anticipated expenditures for specific program subfunctions, including equipment repair and insurance?

1. Line-item

2. Performance

3. Fixed

4. Lump-sum

The correct answer is: Line-item

A line-item budget is designed to provide detailed financial accounting by listing anticipated expenditures for specific items or functions within an organization. This type of budget categorizes expenses into individual accounts, which allows for tracking of where funds are allocated and spent. When preparing a line-item budget, expenditures for specific program subfunctions, such as equipment repair and insurance, are explicitly documented. This level of detail enables an organization to monitor and control spending effectively. In contrast, performance budgets focus on the outputs or outcomes of programs rather than specific line items. Fixed budgets are predetermined and remain constant regardless of the actual activity levels, which does not allow for consideration of specific program needs. Lump-sum budgets provide a total allocation for a program without detailing how funds may be distributed among specific expenditures. Therefore, the requirement to list anticipated expenditures for specific subfunctions aligns perfectly with the characteristics of a line-item budget.