Chapter 17; Developing a Program Pricing Philosophy Flashcards
what is financial accounting?
preparing of info for reporting financial performance of organization to outer parties
what are financial reports prepared according to?
GAAP - generally accepted accounting principles
what are assets?
liabilities and owners equity
what is management accounting?
prepares info for managers internal use
what does accounting data provide?
lots of info for programmers to help manage resources and achieve goals and objectives
What are the three types of accounting info can be prepared for?
Full cost accounting
Differential accounting
Responsibility accounting
what is full cost accounting?
determining full cost of producing a good or service in an agency
What is responsibility accounting?
account of financial sub units, areas of operational responsibility so match and observed for isolated financial performance in costs and revenues
what are the 6 objectives of pricing?
- using resources efficiently
- fairness
- providing max. opportunity
- rationing
- developing positive user attitudes
- commercial sector encouragement
What 4 things do agency’s pricing policies revolve around?
who to charge
how much to charge
who to subsidize
how much to subsidize them
What are the 3 types of service category systems of payment holders?
public
merit
private
what does public pay mean?
paid for by tax dollars, no user fees, equally available, everyone benefits, usually parks or facilities, not for profit
What does merit pay mean?
partially subsidized with tax toilers, user fees recover costs, benefits are attributed to public interest and private gains, sometimes from other activities
what is private pay mean?
paid for entirely by user, good received is limited to the user, principle type offered by commercial agencies
