What kind of items does a capital budget typically cover?

A capital budget typically focuses on big ticket items used over several years, which is why the answer is correct. This type of budget is concerned with long-term investments in assets that have a useful life extending beyond the current fiscal year. These assets often include infrastructure, buildings, equipment, and other significant investments that require substantial financial commitment and are expected to generate value over an extended period.

In contrast, regular operating expenses such as salaries, consumables that are frequently purchased, and training and development programs are generally considered part of the operating budget. Operating expenses are typically incurred on a regular basis and do not have the long-term impact associated with capital expenditures. Therefore, while necessary for the functioning of an organization, these items do not fall under the purview of a capital budget. The distinction between capital and operating budgets is crucial for understanding how governments and organizations plan their financial resources effectively over time.