Which budget type allocates specific amounts of money to each expenditure item listed in the budget?

• A. Comprehensive budget
• B. Line item budget
• C. Program budget
• D. Flexible budget

Answer: (B)

Allocating specific amounts to each expenditure item means assigning a fixed dollar amount to every line item, such as salaries, supplies, and equipment. This precise detailing is the hallmark of a line-item budget. It allows tight cost control and easy comparison of actual spending to what was planned, because every category has a defined budget.

Other approaches organize funds differently: a program budget focuses on funding by programs or services rather than individual expenses; a comprehensive (or master) budget covers the overall financial picture with less emphasis on itemized lines; a flexible budget adjusts the planned amounts based on actual activity levels rather than fixed per-item allocations. Since the requirement is to earmark exact amounts for each expenditure item, the line-item budget fits best.