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

Which type of budget allows for flexibility and detailed breakdowns of categories such as equipment repair?

1. Fixed

2. Line-item

3. Lump-sum

4. Zero-based

The correct answer is: Line-item

The line-item budget is designed to provide a detailed breakdown of expenses, allowing for greater specificity and flexibility in managing finances. Under a line-item budget, expenditures are categorized and listed separately, enabling the athletic trainer or the organization to track and allocate resources effectively. This approach helps in understanding where funds are being directed, such as into specific areas like equipment repair, making it easier to adjust allocations based on actual needs or changes in priorities. By contrast, other budgeting methods may not offer the same level of detailed oversight. A fixed budget typically encompasses a set total amount for an entire period without flexibility for adjustments in specific categories. A lump-sum budget provides a total allocation without detailing how those funds should be spent, which can hinder the availability of insights into specific cost categories, such as equipment repair. Zero-based budgeting requires justifying all expenses from the ground up for each new period, which can be time-consuming and may not focus on granular details in the same way that a line-item budget does.