A primary disadvantage of preparing separate operating and capital budgets is:

a. The distinction between a capital and an operating expenditure is often not clear.

b. It increases the risk of violating the principle of interperiod equity.

c. It risks overlooking the impact of capital expenditures on operating expenditures.

d. It leads organizations to favor operating expenditures, which have an immediate payoff, over capital expenditures, which have a long-term payoff.