Final answer:
Expenditures are separated by the fiscal period they are assumed to benefit with functional classifications. Functional classifications refer to the grouping of expenditures based on the purpose they serve.
Step-by-step explanation:
Expenditures are separated by the fiscal period they are assumed to benefit with functional classifications. Functional classifications refer to the grouping of expenditures based on the purpose they serve.
For example, in the context of government spending, different categories of expenditures include national defense, Social Security, healthcare, and interest payments. These categories are further divided into subcategories such as international affairs, science and technology, transportation, education, and more.
By classifying expenditures based on their functions, it becomes easier to analyze and track how funds are allocated and spent for specific purposes.