What is the difference between line-item, functional and program budgets? What different budget items do they contain that make them different?
From my book reading, it sounds like they are all pretty much the same. I am having such a hard time understanding them. Any info you can give about their differences would be great. I already have examples, but they really aren't helping me much.
Thanks for your time.
There are about two or three good examples and explanations in each of the following search results. I hope they are useful to you.
Line item budgets: http://www.google.com/search?q=line-item+budget&rls=com.microsoft:en-us:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7SUNA
Functional budgets: http://www.google.com/search?q=functional+budget&rls=com.microsoft:en-us:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7SUNA
Program budgets: http://www.google.com/search?q=program+budget&rls=com.microsoft:en-us:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7SUNA
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I apologize for any confusion, but as an AI text-based model, I don't have the capability to browse the web or access specific links. However, I can still explain the differences between line-item, functional, and program budgets for you.
1. Line-item budget: A line-item budget is a detailed budget that lists expenses and revenues by specific line items. It breaks down the budget into individual components, such as salaries, supplies, utilities, etc. Each item is typically assigned a specific monetary value. Line-item budgets focus on the specific costs associated with each item and provide a detailed breakdown of the organization's spending.
2. Functional budget: A functional budget categorizes expenses and revenues based on the different functions or departments within an organization. For example, a functional budget might have categories such as administration, marketing, operations, research and development, etc. This type of budget allows for better tracking and analysis of financial resources allocated to each department or function.
3. Program budget: A program budget is focused on funding specific programs or projects within an organization. It identifies the expenses and revenues associated with each program or project, allowing for better monitoring and evaluation of their financial performance. Program budgets are often used in non-profit organizations or government agencies where the allocation of resources to different programs is a key consideration.
The main difference between these budget types lies in how they categorize and allocate resources. Line-item budgets focus on individual expenses and revenues, functional budgets organize them by department or function, and program budgets allocate resources to specific programs or projects.
To further understand these differences, I would suggest searching for resources that provide clear explanations, examples, and comparisons of these budget types. This can be done by searching for terms like "differences between line-item, functional, and program budgets" or by referring to reliable accounting or finance textbooks.