Future kitchen renovations are dependent on which type of budget?

The correct answer is capital budget because this type of budget is specifically used to plan for long-term investments in assets such as buildings, machinery, and major renovations. In the context of kitchen renovations, a capital budget is critical as it reflects the financial planning necessary for significant expenditures that will enhance the functionality and efficiency of the kitchen over time.

Capital budgets often cover expenditures that exceed a certain threshold and are expected to provide benefits over multiple years, which aligns well with the nature of renovations that may involve extensive planning, large financial outlays, and potentially significant improvements to service and operations. This distinguishes it from other types of budgets like operating budgets, which focus on day-to-day costs and expenses, and incremental budgets, which involve small changes based on past budgets, rather than large investments. Cash budgets, on the other hand, emphasize cash flows and liquidity, which are also essential but not directly tied to the broader scope of long-term renovations.