What does a fire department's capital budget primarily detail?

• A. Divides money into several accounts for day-to-day operations
• B. Contains funds for equipment and building maintenance
• C. Details major purchases
• D. Sets performance standards for each program area

Answer: (C)

The main idea being tested is the purpose of a capital budget. A fire department’s capital budget centers on long-term investments and large purchases that create or improve fixed assets, such as new fire apparatus, updated stations, or major facility upgrades. It outlines what will be bought, how much it will cost, how those purchases will be financed, and the timing for when the money will be spent. This is distinct from day-to-day operating expenses (salaries, fuel, routine maintenance) and from setting program performance standards, which fall outside the capital budgeting function. So the capital budget’s primary focus is detailing these major purchases.