Question by  Megan (35)

What is the purpose provided by line item performance and program budgets?

I am studying accounting and do not understand why an organization would use line item performance budgets.


Answer by  mb (5482)

Line item performance budgets allow a company to catogorize its different expenses. Sometimes this is done for tax reasons or to "trim the fat". Its easier to find employees stealing too.


Answer by  makingmoney (110)

It allows for easier viewing and clarification of each item; thus it enables a more clear measurement of programs success or failure. Line item allows for specific evaluation cost and correct monetary allocation such as utility increase of 2% but decrease in water by 1%. Requires managers to answer for differences during budget meetings.


Answer by  sss (3)

program provided budget, is provided for collecting funds to finance the most various projects what are provided to improvement of society

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