Line-Item Functional and Program Budgeting Systems

Developing Line-Item, Functional, and Program Budgeting SystemsEstablishing and creating a budget is crucial for successful program development and implementation. Chapter 13 examines three different program budgeting systems. A line-item budget identifies all anticipated revenue and proposed expenses.Please respond to the following:1)    List and define budget categories in a line-item budget.a)    Describe the importance of having a line-item budget. Use your text to support your answer.2)    After reviewing Chapter 13, determine a program structure for the new program described in the case example.3)    What direct cost is associated with human services programs? What is indirect cost?a)    Explain the importance of knowing the total cost (indirect and direct) of a human services program.4)    Describe the total direct cost methodology, the direct labor cost methodology, and the direct labor hours methodology.a)    In your opinion, which cost allocation methodology is best? Explain your answer using your text or other resources to support your response.READING AND RESOURCESOverviewAssigned ReadingsPlease read the following chapter in your text:•    Chapter 13: “Developing Line-Item, Functional, and Program Budgeting Systems”•    Chapter 13 will illustrate how a line-item budgeting system is created. You will also review how a functional budgeting system is created. In addition, you will also be introduced to the process in which a program budgeting system is created. You will explore not only how the three systems are created, but when it is appropriate to use them and the pros and cons of each system.Additionally, please review the resources below:Web ResourcesA.    Center for Community Health and Development, University of Kansas. (n.d.). Section 1. Planning and writing an annual budget. Community Tool Box.    Fiscal Management Associates. (n.d.). Resources.    Nonprofitworks. (2018). Budget basics.    Nonprofitworks. (2018). Budget planner.    Nonprofitworks. (2018). Sample revenue projection.

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