Which of the following is a characteristic of Program-planning-budgeting systems (PPBS)?

A key characteristic of Program-Planning-Budgeting Systems (PPBS) is its focus on program goals. This approach emphasizes the analysis and evaluation of programs based on their objectives and outcomes rather than merely on the line items of expenditure. By prioritizing program goals, PPBS encourages decision-makers to assess the effectiveness of programs, make decisions on resource allocation, and evaluate whether the outcomes justify the costs. This goal-oriented perspective supports a more strategic approach to budgeting, aligning financial resources with the mission and objectives of the organization.

The other options highlight different budgeting methods that do not fully capture the essence of PPBS. Line-item specificity tends to focus more on detailing every expense without evaluating overall program effectiveness. Zero-based budgeting, while also a systematic approach, does not specifically emphasize the alignment of budgeting with program goals and objectives as PPBS does. Direct operational costs refer to the costs directly attributable to the execution of programs, which is narrower than the broader, goal-driven evaluation fostered by PPBS. Thus, focusing on program goals is what distinguishes PPBS and captures its primary characteristic.