Test Chapter 8_Budgeting II

Question 1

Of the following, the FIRST step in the installation and operation of a performance budgeting system generally should be the

Answer 1

identification of work programs that are meaningful for management purposes

Question 2

Of the following, the MOST important purpose of a system of quarterly allotments of appropriated funds generally is to enable the

Answer 2

head of the executive branch to control the rate at which the operating agencies obligate and expend funds

Question 3

In the preparation of the agency’s budget, the agency’s central budget office has two responsibilities: program review and management improvement.
Which one of the following questions concerning an operating agency’s program is MOST closely related to the agency budget officer’s program review responsibility?

Answer 3

What is the relative importance of this program as compared with other programs?

Question 4

The one of the following which is LEAST important in developing a budget for the next fiscal year for project maintenance is the

Answer 4

staff reassignments which are expected during the next fiscal year

Question 5

The performance budget used by the department places MOST emphasis on

Answer 5

services rendered

Question 6

The LARGEST part of the expenditures of the department is for

Answer 6

personnel services

Question 7

The department function which requires the GREATEST expenditure of funds is

Answer 7

refuse collection

Question 8

A FIRST step in budget preparation is usually

Answer 8

forecasting the amount of various kinds of work to be done during the coming budget year

Question 9

There are various types of budgets which are used to measure different government activities.
The type of budget which particularly measures input of resource as compared with output of service is the _____ budget.

Answer 9

performance

Question 10

The budget for a given cost during a given period was $100,000.
The actual cost for the period was $90,000. Based upon these facts, one should say that the responsible manager has done a better than expected job in controlling the cost if the cost is

Answer 10

variable and actual production equaled budgeted production

Question 11

In most municipal budgeting systems involving capital and operating budgets, the leasing or renting of facilities is usually shown in

Answer 11

the operating budget

Question 12

New York City’s budgeting procedure is unusual in that budget appropriations are considered in two parts, as follows: _____ budget and ______ budget.

Answer 12

Expense; capital

Question 13

Budget planning is MOST useful when it achieves

Answer 13

cost control

Question 14

After a budget has been developed, it serves to

Answer 14

provide a yardstick against which actual costs are measured

Question 15

A budget is a plan whereby a goal is set for future operations. It affords a medium for comparing actual expenditures with planned expenditures.
The one of the following which is the MOST accurate statement on the basis of this statement is that:

Answer 15

the budget presents an estimate of expenditures to be made in the future

Question 16

If one attempts to list the advantages of the management-by-exception principle as it is used in connection with the budgeting process, several distinct advantages could be cited.
Which of the following is NOT an advantage of this principle as it applies to the budgeting process? Management-by-exception

Answer 16

escalates the frequency and importance of budget-related decisions

Question 17

Of the following statements that relate to a budget, select the one that is MOST accurate.

Answer 17

A budget specifies how much the organization to which it relates estimates it will spend over a certain period of time

Question 18

Of the following, the one which is NOT a contribution that a budget makes to organizational programming is that a budget

Answer 18

stresses the need to forecast specific goals and eliminates the need to focus on tasks needed to accomplish goals

Question 19

A line-item budget is a GOOD control budget because

Answer 19

it clearly specifies what the money is buying