Which budget details the major purchases the department plans to make?

• A. Operating budget
• B. Capital budget
• C. Contingency budget
• D. Program budget

Answer: (B)

The capital budget is specifically designed to outline the major purchases and investments that a department plans to undertake, typically involving long-term assets or significant projects. This type of budget focuses on items such as buildings, vehicles, equipment, and other infrastructure that require substantial financial commitment and will be used over several years.

In contrast, the operating budget usually involves day-to-day expenses necessary for the routine functioning of the department, such as salaries, utilities, and consumable supplies. The contingency budget is intended for unexpected expenses that may arise, providing a financial safety net rather than planning for major acquisitions. Meanwhile, the program budget allocates resources based on specific projects or services the department will deliver, not specifically focusing on large capital purchases.

Thus, the capital budget is the most appropriate choice for detailing major purchases because it addresses the strategic financial planning required for significant investments that support the department's overall mission and long-term goals.