What does a line-item budget consist of?

A line-item budget consists of a comprehensive itemization of revenue sources and proposed expenditures. This budgeting method provides a clear view of where funds are allocated and how much is budgeted for each specific item or category. It enables transparency in financial planning by detailing every expense, such as personnel costs, equipment purchases, and operational expenses, allowing for easier tracking and management of funds.

In the context of a fire department or similar organization, this budget format is particularly useful for ensuring that each department or activity is adequately funded according to its needs, thus facilitating better financial oversight and accountability. By focusing on specific line items, it becomes easier to identify areas where costs can be reduced or where funding may be needed urgently.

The other alternatives focus on different aspects of operational planning or risk management rather than budget specifics. While important for overall management and strategic planning, they do not directly represent the structure and purpose of a line-item budget.