Which budgeting approach identifies programs and allocates funds for each program or activity?

• A. Long term statistics
• B. Planning
• C. Zero based budget
• D. Program budgeting

Answer: (D)

Program budgeting is the approach that identifies a set of programs or activities and assigns funding to each one. This method structures the budget around what the organization intends to deliver—fire suppression, fire prevention, EMS, training, and so on—and shows how much money goes to each program. It makes it easier to compare the cost and expected outcomes of different programs and to allocate resources where they most effectively support goals.

Long-term statistics are data, not a budgeting method. Planning is about setting goals and outlining steps to achieve them, not necessarily tying resources to specific programs. Zero-based budgeting starts from zero and requires justification for every expenditure, which can apply to items within programs but isn’t defined by budgeting explicitly by programs and activities.