Test Chapter 7_Budgeting Flashcards
The budget which shows the money to be spent to build and equip a new hospital is known as the ______ budget.
Capital
A significant characteristic of the program budget is that it lends itself to review and analysis. Why?
The budget includes measurable objectives.
The advantages of program budgeting over line item and performance budgeting is:
I. Tight administrative control
II. Forces the administrator to think through his total operation’
III. Measurable objectives
IV. Simplicity of development
V. Closer estimates of future costs
II, III, V
Of the following considerations, the one which is LEAST important in preparing a department budget request is the
amounts in previous budget requests
The type of budget which provides the MOST flexibility in the use of appropriate funds is the ____ budget.
program
A WEAKNESS of many budgetary systems today is that they
are subjectively determined by those most directly involved
Standards on which budgets are developed should be based PRIMARILY on
analytical studies
The income, cost, and expense goals making up a budget are aimed at achieving a predetermined objective but do not necessarily measure the lowest possible costs. This is PRIMARILY because
the level of expenditures provided for in a budget by budget committees is frequently an arbitrary rather than a scientifically determined amount
You, as a unit head, have been asked to submit budget estimates of staff, equipment, and supplies in terms of programs for your unit for the coming fiscal year. In addition to their use in planning, such unit budget estimates can be BEST used to
reveal excessive costs in operations
Which of the following is the BEST reason for budgeting a new calculating machine for an office?
The machine would save time and money.
As an aspect of the managerial function, a budget is BEST described as a
type of management plan expressed in quantitative terms
Which of the following is generally accepted as the MAJOR immediate advantage of installing a system of program budgeting?
encourages managers to relate their decisions to the agency’s long-term goals
Of the following, the BEST means for assuring necessary responsiveness of a budgetary program to changing conditions is by
reviewing and revising the budget at regular intervals so that it retains its character as a current document
According to expert thought in the area of budgeting, participation in the preparation of a government agency’s budget should GENERALLY involve
all levels of the organization
Of the following, the MOST useful guide to analysis of budget estimates for the coming fiscal year is a comparison with
appropriations as amended for the current fiscal year
Line managers often request more funds for their units than are actually required to attain their current objectives . Which one of the following is the MOST important reason for such inflated budget requests? The
expectation that budget examiners will exercise their prerogative of budget cutting
Integrating budgeting with program planning and evaluation in a city agency is GENRALLY considered to be
DESIRABLE; budgeting facilitates the choice-making process by evaluating the financial implications of agency programs and forcing cost comparisons among them
In government budgeting, the problem of relating financial transactions to the fiscal year in which they are budgeted is BEST met by
entering expenditures
If the agency’s bookkeeping system records income when it is received and expenditures when the money is paid out, this system is USUALLY known as a _____ system.
cash
An audit, as the term applies to budget execution, is MOST NEARLY a
check on the legality of expenditures and is based on the appropriations act
In government budgeting, there is a procedure known as ALLOTMENT. Of the following statements which relate to allotment, select the one that is MOST generally considered to be correct. Allotment
is designed to prevent waste
In government budgeting, the establishment of the schedules of allotments is MOST generally the responsibility of the
budget unit only
Of the following statements relating to preparation of an organization’s budget request, which is the MOST generally valid precaution?
Give specific instructions on the format of budget requests and required supporting data.
Based on the above budget, which is the MOST valid statement?
Environmental Safety, Air Pollution Protection, and Water Pollution Protection could all be considered program elements.
Which of the following is NOT an advantage of a program budget over a line-item budget? A program budget
gives us more control over expenditures than a line-item budget
Of the following statements which relate to the budget process in a well-organized government, select the one that is MOST NEARLY correct.
The budget cycle is the step-by-step process which is repeated each and every fiscal year.
If a manager were asked what PPBS stands for, he would be right if he said
planning programming and budgeting system
The sample budget shown is a simplified example of a ______budget.
performance
The budget shown in the sample differs CHIEFLY from line-item and program budgets in that it includes
levels of service
Performance budgeting focuses PRIMARYB attention upon which one of the following? The
general character and relative importance of the work to be done or the service to be rendered
