Which type of budget allows adjustments to be made to achieve departmental goals?

The program budget is particularly effective in aligning financial resources with specific goals and outcomes within a department. This budgeting approach emphasizes the allocation of funds based on the various programs offered by the organization, allowing for flexibility in adjusting allocations as priorities shift or as new objectives are identified. By focusing on distinctly defined programs and their outcomes, management can adapt budgets to address changing needs in operational objectives and performance metrics, ensuring that departmental goals are met efficiently.

In contrast, the capital budget primarily deals with long-term investments in facilities and equipment, which means it's less responsive to short-term adjustments aimed at achieving dynamic departmental goals. The operating budget outlines the day-to-day expenses of the organization, but it typically sets fixed limits for expenditures and may not allow for mid-course adjustments. The zero-based budget method requires all expenses to be justified from scratch for each new period, which can be time-consuming and may not be as versatile in responding to ongoing strategic changes throughout the fiscal year.