Question 1

Which of the following is NOT the role of policy makers in solving social problems?

Accepted Answer

A) Selecting among options 
B) Developing alternatives. 
C) Appropriating resources required to implement programs 
D) Establishing expected goals.

Question 2

With regard to audits of SEA, which of the following might be appropriate for an auditor to do?

Accepted Answer

A) Assess the appropriateness of the organizations basic objectives. 
B) Verify that the government selected the correct indicators to gauge whether its objectives were achieved. 
C) Evaluate whether SEA data is fairly presented. 
D) Evaluate the usefulness of SEA data.

Question 3

Use the following information to answer Questions 
The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. $$\begin{array}{l}
\begin{array} {lll } 
\text {Cost of tractor and equipment useful life 10 years }&\$220,000\
\text {Salvage value of tractor in 10 years }&20,000\
\text {Yearly cost of operator }&6,000\
\text {Yearly maintenance and upkeep, supplies, etc. }&3,000\
\text {Option \#2 }&\
\text {Yearly fees }&\$36,000\
\text {Option \#3 }&\
\text {Yearly cost of part-time labor }&\$32,000\
\text {Yearly cost of supplies, equipment repair, etc. }&1,000\
\text {Present value factors $ @ 6 \% $ }&\
\text {$ \$ 1 $ due in ten years }&.55839\
\text {Annuity of $ \$ 1 $ for 10 years }&7.36009\
\end{array}
\end{array}$$
-Which option should the City select based solely on cost?

Accepted Answer

A) Option #1 
B) Option #2 
C) Option #3 
D) Unable to determine.

Question 4

College professors are evaluated on teaching, research, and service.Which of the following would be a surrogate for the desired operational objective of "engaged in research that expands the horizons of knowledge."

Accepted Answer

A) Value of research grants received. 
B) Number of publications in peer-reviewed journals. 
C) Both of the above. 
D) Neither of the above.

Question 5

Zero-based budgeting requires the periodic review of all programs, not just new ones.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an example of a cost-outcome measure?

Accepted Answer

A) Cost per passenger-mile on public transit. 
B) Cost per hot meal served. 
C) Cost per legal case handled. 
D) Cost per client placed in gainful employment.

Question 7

Use the following information to answer Questions 
The City Swimming Pool is considering several options for maintaining the grounds around the pool area over the next ten years.One option is to buy a tractor with equipment for cleaning the underbrush and cutting the grass.A second option is to contract out with a local Garden and Nursery Center that provides this kind of service.A third option is to hire many local youths to do most of the work by hand.The City already has several small lawnmowers and grass-cutting equipment. $$\begin{array}{l}
\begin{array} {lll } 
\text {Cost of tractor and equipment useful life 10 years }&\$220,000\
\text {Salvage value of tractor in 10 years }&20,000\
\text {Yearly cost of operator }&6,000\
\text {Yearly maintenance and upkeep, supplies, etc. }&3,000\
\text {Option \#2 }&\
\text {Yearly fees }&\$36,000\
\text {Option \#3 }&\
\text {Yearly cost of part-time labor }&\$32,000\
\text {Yearly cost of supplies, equipment repair, etc. }&1,000\
\text {Present value factors $ @ 6 \% $ }&\
\text {$ \$ 1 $ due in ten years }&.55839\
\text {Annuity of $ \$ 1 $ for 10 years }&7.36009\
\end{array}
\end{array}$$
-Due to limited resources, Johnson City must select from among the following capital projects.Which project should the City select?

Accepted Answer

A) Court-ordered improvements to the City Jail. 
B) Repairing the roof on City Hall. 
C) Replacing an inefficient data processing system with a more efficient system. 
D) Adding two new police cars to the fleet.

Question 8

Rather than cash inflows, the potential benefits of many capital assets can be expressed as cash savings to governments and not-for-profits.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an advantage of program budgeting over traditional budgeting techniques?

Accepted Answer

A) It promotes continuation of existing programs. 
B) It relates expenditures to objectives. 
C) It encourages consideration of alternative means of accomplishing the objective. 
D) Both b and c.

Question 10

It is difficult for accountants to have a role beyond auditing the financial statements of governments and not-for-profits.

Accepted Answer

A) True 
 B)False

Question 11

The stated objective of the National Partnership for Reinventing Government is to "reinvent government to work better, cost less, and to get Americans to care about it."

Accepted Answer

A) True 
 B)False

Question 12

Because of the difficulty of measuring quality teaching, many colleges and universities rely heavily on student evaluations of the quality of instruction and accomplishment of course objectives.Which of the following is are a true statements?

Accepted Answer

A) This is a good practice, which may improve the quality of instruction. 
B) This is a good idea but may have unintended negative consequences by causing faculty to decrease the rigor of a course. 
C) Both are true. 
D) Neither is true.

Question 13

Use the following information to answer Questions 
A piece of federal legislation has as one of its objectives "improving the health of older Americans." Title 20 of that legislation provides for granting federal funds to governmental or not-for-profit entities to provide nutritious hot meals to older Americans in congregate settings.Senior Citizens Center, a not-for-profit entity, receives funding under this legislation.The Center determines for one-month period, the following: $$\begin{array} { l l } 
\text { Number of meals served}&500\
\text { Total number of individuals participating in the program}& 25\
\text { Total meals costs incurred }& \$ 860\
\text { Average cost per meal }& \$ 1.72\
\end{array}$$
-The numerical value that best represents outputs of this program is

Accepted Answer

A) 500 
B) $1.72 
C) $860 
D) None of the above.

Question 14

All governments and not-for-profit entities should establish goals and objectives.Which of the following is a desirable characteristic of an operational objective?

Accepted Answer

A) An operational objective should be open to interpretation. 
B) An operational objective should be measurable. 
C) An operational objective should be a statement of aspirations. 
D) An operational objective should be accomplishable by an unspecified future date.

Question 15

GASB SEA reporting proposals focus on measures of efforts, measures of accomplishments, and measures that relate efforts to accomplishments.

Accepted Answer

A) True 
 B)False

Question 16

An accounting program has determined that preparing students for careers in public accounting is the program's goal.Which of the following measurements is the best outcomes measurement for this accounting program?

Accepted Answer

A) Number of accounting majors that graduate. 
B) Number of students that pass the CPA examination. 
C) Number of students in management positions in public accounting firms ten years after graduation. 
D) Number of students employed in public accounting within one year of graduation.

Question 17

Use the following information to answer Questions 
A piece of federal legislation has as one of its objectives "improving the health of older Americans." Title 20 of that legislation provides for granting federal funds to governmental or not-for-profit entities to provide nutritious hot meals to older Americans in congregate settings.Senior Citizens Center, a not-for-profit entity, receives funding under this legislation.The Center determines for one-month period, the following: $$\begin{array} { l l } 
\text { Number of meals served}&500\
\text { Total number of individuals participating in the program}& 25\
\text { Total meals costs incurred }& \$ 860\
\text { Average cost per meal }& \$ 1.72\
\end{array}$$
-The numerical value that best represents outcomes is

Accepted Answer

A) 500 
B) $1.72 
C) $860 
D) None of the above.

Question 18

Which of the following is a reason for governmental and not-for-profit entities to incorporate service efforts and accomplishments SEA measures into their management process?

Accepted Answer

A) Measuring and reporting upon helps management determine short-term cash flow requirements. 
B) SEA measures allow management to make objective assessments about whether the goals of the government are worth achieving. 
C) SEA reporting fosters sound budgeting and administration. 
D) SEA fosters budgetary compliance and custodianship of resources.

Question 19

Which of the following is NOT an example of a performance budget?

Accepted Answer

A) Program budget. 
B) Object classification budget. 
C) Zero-based budget. 
D) Priority-based budget.

Question 20

In which of the following steps of the management cycle of governmental and not-for-profit entities are accountants least involved?

Accepted Answer

A) Performing cost benefit analysis on proposed programs. 
B) Selecting among alternative programs. 
C) Preparing financial reports. 
D) Evaluating efficiency and effectiveness of programs.

Exam 15: Managing for Results

Which of the following is NOT the role of policy makers in solving social problems?

With regard to audits of SEA, which of the following might be appropriate for an auditor to do?

College professors are evaluated on teaching, research, and service.Which of the following would be a surrogate for the desired operational objective of "engaged in research that expands the horizons of knowledge."

Zero-based budgeting requires the periodic review of all programs, not just new ones.

Which of the following is an example of a cost-outcome measure?

Rather than cash inflows, the potential benefits of many capital assets can be expressed as cash savings to governments and not-for-profits.

Which of the following is an advantage of program budgeting over traditional budgeting techniques?

It is difficult for accountants to have a role beyond auditing the financial statements of governments and not-for-profits.

The stated objective of the National Partnership for Reinventing Government is to "reinvent government to work better, cost less, and to get Americans to care about it."

Because of the difficulty of measuring quality teaching, many colleges and universities rely heavily on student evaluations of the quality of instruction and accomplishment of course objectives.Which of the following is are a true statements?

All governments and not-for-profit entities should establish goals and objectives.Which of the following is a desirable characteristic of an operational objective?

GASB SEA reporting proposals focus on measures of efforts, measures of accomplishments, and measures that relate efforts to accomplishments.

An accounting program has determined that preparing students for careers in public accounting is the program's goal.Which of the following measurements is the best outcomes measurement for this accounting program?

Which of the following is a reason for governmental and not-for-profit entities to incorporate service efforts and accomplishments SEA measures into their management process?

Which of the following is NOT an example of a performance budget?

In which of the following steps of the management cycle of governmental and not-for-profit entities are accountants least involved?