A patient care area is scheduled to have several rooms remodeled with the installation of new cardiac monitoring equipment. This remodeling and equipment purchases would be considered as which part of the organization's budget?
1. Capital
2. Supplies
3. Purchased services
4. Overhead
Capital
Rationale: Capital budgets determine the organization's ability to purchase equipment and to upgrade or expand facilities. Supplies and purchased services are a part of the operating expenses portion of the budget. Overhead is considered a nondiscretionary expense of the budget.
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