Which budgeting approach focuses on the appropriateness of each activity in achieving organizational goals?

The budgeting approach that emphasizes the appropriateness of each activity in achieving organizational goals is known as Planning Performance and Program Budgeting. This method aligns resources with objectives by assessing various programs and activities based on their effectiveness in meeting specific goals. It enables managers to focus not just on financial expenditures, but rather on the outcomes and impacts that each activity can deliver.

This approach incorporates performance metrics and evaluation processes that help in determining how well each program serves the organization’s overall objectives. By using this method, public works managers can prioritize funding and resources for those activities that demonstrate the highest potential for achieving desired outcomes, ensuring that budgeting is closely tied to strategic planning.

Other budgeting approaches, such as Line Item Budgeting, tend to focus primarily on detailed expenditure items without assessing the performance or effectiveness of the programs. Zero-Based Budgeting starts from a "zero base" and requires justification for all expenses, rather than evaluating each activity within the context of the overall goals. Program Budgeting organizes expenditures by program rather than line items, but it may not systematically assess the appropriateness of activities against strategic objectives in the way that Planning Performance and Program Budgeting does.