HSC Business Studies - Finance Practice Exam

The type of budget that is primarily concerned with capital expenditure is a project budget. This budget focuses on the costs associated with specific projects that typically involve significant investment in assets, such as equipment, infrastructure, or other long-term improvements. Project budgets outline the projected spending for these assets and help organizations allocate funds, monitor costs, and ensure that projects are completed within financial constraints.

Operating budgets, on the other hand, revolve around day-to-day expenses and revenue generation, while financial budgets encompass broader financial planning over a certain period, including all types of revenues and expenditures. Contingency budgets are reserved for unforeseen circumstances and are typically allocated to handle unexpected costs rather than planned capital expenditures. Thus, a project budget is the appropriate classification when discussing budgets focused on capital expenditure.