Which budget type allows the AD to shift money between budget areas and includes long-range planning for facilities?

• A. Zero-Based Budget
• B. Incremental Budget
• C. Combination Budget
• D. Operating Budget

Answer: (B)

Think about flexibility and planning horizon. The budget type that combines ongoing operations with capital needs and coordinates expenditures across different areas is the combination budget. It ties operating needs to capital projects, so money can be shifted between budget areas to support long-range facility plans, renovations, or new facilities as priorities evolve. That integrated approach makes it well suited for an athletic department planning future facilities.

By comparison, zero-based budgeting requires justifying every item from zero each period, which is about thorough scrutiny rather than cross-area reallocation for long-range plans. Incremental budgeting relies on last year’s numbers with small tweaks, which tends to preserve the status quo and limit major shifts needed for facility initiatives. An operating budget focuses on day-to-day expenses and revenues and doesn’t inherently address capital projects or long-range facility planning.