Chapter 4 Definitions Flashcards
budget
a type of operational plan for the coordination of resources and expenditures
spending-ceiling model
a type of expenditure budgeting that requires justification only for those expenses that exceed those of the previous budget cycle. also known as the incremental model
spending-reduction model
a type of budgeting used during periods of financial retrenchment that requires reallocation of institutional funds, resultign in reduced spending levels for some programs
zero-based budgeting
a model that requires justificaiton for every budget line item without reference to previous spending patterns
fixed budgeting
a method in which expenditures and revenues are projected on a monthly basis, therby providing an estimate of cash flow
variable budgeting
a method requireing adjustment of monthly expenditures so that they do not exceed revenues
lump-sum budgeting
a method that allocates a fixed amount of money for an entire program without specifiying how the money will be spent
line-item budgeting
a method that allocates a fixed amount of money for each subfunction of a program
performance budgeting
a method that allocates funds for discrete activities
needs assessment
a systematic set of procedures undertaken to set organizational or programmatic priorities based on identified needs
need
the discrepancy betweent he present program status and the desired future state of one or more aspects of the program
purchasing
the process of acquiring goods and services
request for quotation (RFQ)
a document that provides vendors with the specifications for bidding ont he sale of goods and services
bidding
a process whereby vendors provide cost quotations for goods and services they wish to sell
negotiations
the process of bargaining
implied warranty
an unstated understanding that a vendor will “make good” if a product is faulty
express warrnaty
an explicit statement specifying the conditions, circumstances, and terms under which a vendor will replace or repair a product if found to be faulty
FOB point
freight-on-board point. The point at which the title for shipped goods passes from vendor to purchaser
Requistion
a type of formal or informal communications, usually written, used for requesting authorization to purchase goods or services
purchase order
a document that formalizes the terms of a purchase and transmits the intentions of the buyer to purchase goods or services from a vendor
receiving
a document that formalizes the terms of a purchase and transmits the intentions of the buyer to purchase goods or services from a vendor
receiving
the process of accepting delivery of goods purchased from a vendor
pooled buying consortium
a group of similar institutions that merge resources to purchase goods in large quantities to receive volume discounts
inventory management
the process of controlling equipment and supply stocks so that services can be provided without interruption while the use of institutional resources is maximized