Line-Item budgeting allocates a fixed amount of money for each subfunction of a program; A) expendable supplies, equipment repair, team physical, and insurance. B) easy to understand and prepare; the AT has limited flexibility in responding to midyear financial crises

• A. Spending-ceiling model
• B. Line-Item budgeting
• C. Zero-based budgeting
• D. Performance budgeting

Answer: (B)

Line-item budgeting is defined by assigning fixed amounts to specific components or line items of a program, such as expendable supplies, equipment repair, team physicals, and insurance. This approach is straightforward and easy to understand because every cost category has its own pre-set dollar amount, making the overall budget simple to prepare and review.

The trade-off is that funds are locked into those line items, which makes it hard to move money around in response to midyear financial changes or unexpected needs. If something comes up that isn’t neatly covered by an existing line item, there’s little flexibility to reallocate without adjusting the budget formally, which can be bureaucratic and slow.

Other budgeting models differ in how they allocate or justify funds. A spending-ceiling model focuses on a maximum allowable expenditure rather than fixed amounts for each subfunction, zero-based budgeting requires building the budget from scratch by justifying every item, and performance budgeting ties expenditures to specific outcomes, rather than predefined line-item amounts.