What differentiates program budgeting from line-item budgeting?

Program budgeting differentiates itself from line-item budgeting primarily through its focus on categorizing expenditures based on specific programs or services rather than merely the line items associated with each expense. In program budgeting, expenditures are organized according to the results or outputs they aim to achieve, providing a clearer link between budget items and the organization's goals or objectives. This allows for a more strategic allocation of resources as it focuses on funding programs that deliver value rather than just accounting for individual financial transactions.

Line-item budgeting, on the other hand, emphasizes detailed descriptions of individual line items like salaries, supplies, and equipment, without necessarily tying them to the overall effectiveness or efficiency of a program. This can lead to a more fragmented view of how resources are utilized and how they contribute to broader organizational goals.

The other choices do not capture the essence of what makes program budgeting distinct. While it may involve operations and can apply to capital projects, these aspects are not the defining characteristics that set it apart from line-item budgeting. The historical budget aspect focuses on past budgeting practices, which does not specifically differentiate between these two budgeting methods.