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30 Multiple choice questions

  1. Ans: D
    Page: 244
  2. Ans: The capital budget prepared to account for potential expenditures for major fixed and movable equipment, generally all expenditures that are "capitalized" and then depreciated over time.
  3. Ans: C
    Page: 242
  4. Ans: The involvement of individual managers in the process breeds their commitment; they are more likely to strive to make it work because they took part in its development.
  5. Ans: It can be a control mechanism; it can be used to help keep expenditures in line with resources; it can be a basis for the supervisor's performance evaluation; it can be a measure of resource utilization.
  6. Ans: A relief factor must be computed is a multiplier applied to the number of posts in a given facility to determine the actual number of staff that must be on board to cover all posts.
  7. Ans: C
    Page: 245
  8. Ans: C
    Page: 240
  9. Ans: A
    Page: 241
  10. Ans: D
    Page: 241
  11. Ans: Required coverage is 4.2 FTEs; a total of 168 hours must be covered, so 168/40 = 4.2.
  12. Ans: B
    Page: 248
  13. Ans: A flexible budget recognizes that certain costs can vary throughout the budget year and attempts to account for this variation; for example, in most places utilities will fluctuate with the seasons.
  14. Ans: Being under budget for a period is not always a favorable condition. It can mean: expenditures are occurring in a pattern inconsistent with the allocation or that certain necessary or desirable expenditures have been overlooked.
  15. Ans: A fixed budget assumes a stable level of operations throughout the term of the budget.
  16. Ans: It cannot be considered such because no matter how well it is structured, it remains a plan, and as such it attempts to look into a time that is not yet here. Rarely if ever will a budget be precise, and rarely if ever will the results be exactly as predicted.
  17. Ans: A position tracking system is a means of following positions from their original allocation through to their present utilization, to ensure that proper accountability and utilization are enforced regarding all allocated positions.
  18. Ans: The budget manual is a book of information instructions assembled by the budget committee for the current year's budget preparation activity. It contains all information, instructions, and forms necessary for budget preparation.
  19. Ans: When the budget is still prepared "upstairs" and handed down to managers carry out, the individual manager is required to implement a plan without having participated in its development—never an appropriate practice.
  20. Ans: A position is represented by a person, corresponding to a single FTE. A post is a discrete assignment in an organization, which may be filled only 8 hours a day, 5 days a week by one person; 24 hours a day, 365 days a year by multiple persons, or by some other combination of days and daily hours.
  21. Ans: An "anti-deficiency" law is legislation requiring the agency to spend no more than its allocated funding.
  22. Ans: Staffing refers to the numbers of actual employees or full-time equivalents (FTEs) assigned to an agency or unit; scheduling is the process of making actual assignments to posts within an agency or unit.
  23. Ans: 246
    Page: A
  24. Ans: When the team approach is used: the budget is usually more realistic and workable; cooperative budgeting activities tend to strengthen managers in their jobs; a spirit and attitude of teamwork is created; the budget is more acceptable to those who have to make it work.
  25. Ans: A
    Page: 249
  26. Ans: A budget is a financial plan, an estimate of future operations and a means of control over those operations; a quantitative expression of an organization's operating intentions in terms of numbers.
  27. Ans: It is roster management centralized through the use of a coherent, coordinated management that provides daily rosters showing the actual array of manpower available to each shift supervisor.
  28. Ans: The statistical budget consists of projections of activity for the coming budget year, the best estimates of work activity for the coming 12-month period that are then priced out to arrive at dollar figures for the budget.
  29. Ans: The fiscal year is the organization's 12-month accounting year; it may be any consecutive 12-month period established for accounting purposes.
  30. Ans: B
    Page: 244