Which item would appear in a capital budget?

In the context of capital budgeting, the focus is on long-term investments that will benefit an organization over several years. Capital budgets typically involve the acquisition of significant assets that require substantial financial outlay and have a useful life that extends beyond a single year.

The inclusion of food service equipment in a capital budget is appropriate because it represents a major purchase that will contribute to the operation's efficiency, productivity, and service quality over time. This type of equipment often includes ovens, refrigerators, and other machinery necessary for food preparation and service, all of which are expected to provide value over multiple budget periods.

On the other hand, food costs, labor costs, and paper supplies fall under operational or expense budgets. These items are related to day-to-day operational expenditures and are typically accounted for in a different manner, focusing on ongoing operational expenses rather than long-term capital investments. Thus, food service equipment stands out as the correct choice for inclusion in a capital budget due to its significant financial impact and long-term utility.