Question 1

Every item of proposed expense can be classified as either direct cost or an indirect cost

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is NOT one of the steps to move from a line-item budget system to a functional or program budgeting system.

Accepted Answer

A)   Selecting the program's intermediate output measure
B)   Computing the program's cost per intermediate output
C)   Determining the intermediate cost per client's per day of attendance
D)   Determining the program's final output objective C

Question 3

There is no best cost allocation methodology for a human service agency or program to use in allocating indirect costs. Which of the following statements is INCORRECT?

Accepted Answer

A)   The total direct costs methodology is the simplest approach to implement.
B)   The direct labor costs methodology is said to be superior approach then the majority of an agency's programs are labor intensive.
C)   The direct costing method is said to be the most accurate for of cost allocation.
D)   The indirect costing method is used when labor is intensive but labor hours are not. D

Question 4

The work of the executive director in a human service agency benefits all agency programs and is an indirect cost. Her salary cannot be placed solely in any one program but is assigned to the __________.

Accepted Answer

The answer of The work of the executive director in...

Question 5

All budget categories in a line-item budget should be operationally defined.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT a part of allocating indirect costs to the cost pool:

Accepted Answer

A)   computing an indirect cost rate.
B)   dividing the indirect cost pool by the total direct cost of all programs.
C)   each program's share of direct labor costs.
D)   using total direct costs as the basic to apportion the indirect cost pool.

Question 7

In human service agencies, functional, and program budgeting systems are generally developed only at the program level.

Accepted Answer

A) True 
 B)False

Question 8

The type of programmatic and financial data and information provided by program budgeting systems is extremely useful for planning purposes.

Accepted Answer

A) True 
 B)False

Question 9

The actual ________ of a budget reduction on the operations of a human service agency or program is equal to the amount of the necessary reduction multiplied by the number of months elapsed in the fiscal year.

Accepted Answer

The answer of The actual ________ of a budget reduction...

Question 10

The creation of a line-item budgeting system for a human service agency or program involves three of the following steps. Which of the following is NOT a step commonly used in creating a line-item budget?

Accepted Answer

A)   Designing a standardized line-item budget format
B)   Defining common budget terms and identifying all revenues and expenses
C)   Balancing the budget
D)   Receiving input form program staff

Question 11

The time period, called a fiscal year, usually follows one of three time frames. Which of the following is NOT considered to be one of those time frames?

Accepted Answer

A)   June 1 to May 31
B)   January 1 to Dec 31
C)   July 1 to June 30
D)   October 1 to September 30

Question 12

By relating costs to planned outcomes (results, accomplishments, or impacts) a human service agency can determine all EXCEPT which of the following:

Accepted Answer

A)   how cost effective its program are.
B)   increase the credibility of the agency with funding sources, advocacy groups and clients.
C)   determine if the program has excess staff.
D)   use the information to plan for the future.

Question 13

The revenue and expense categories (line-items) in a line-item budget format are designed to be mutually exclusive and exhaustive.

Accepted Answer

A) True 
 B)False

Question 14

A human service agency or program line-item budgeting format does not need to include a complete presentation of all anticipated revenues and proposed expenses. It should include only those items that are already committed to the agency or program.

Accepted Answer

A) True 
 B)False

Question 15

A ________ balanced budget is created when the management of a human service agency or program consciously overstates revenues or understates expenses.

Accepted Answer

The answer of A ________ balanced budget is created when...

Question 16

Which of the following is NOT a part of the line-item budgetary process?

Accepted Answer

A)   The standardized line-item budget format
B)   A detailed justification for each expense
C)   The identification and discussion of where proposed expenses might be reduced
D)   Where additional revenues might be sought in order to bring the finalized budget into balance

Question 17

The knowledge of a program's true unit costs is necessary for which of the following:

Accepted Answer

A)   determining the program costs of each program to determine efficiency of each program.
B)   setting of fees.
C)   operating under pay-for-performance contracts and grants.
D)   determining the true costs of providing its various programs.

Question 18

True Line-item budgeting systems seek to bring consistency to the budgetary process and to provide a financial overview of the human service agency and its programs.

Accepted Answer

A) True 
 B)False

Question 19

Direct costs are those that apply to the whole agency or all programs.

Accepted Answer

A) True 
 B)False

Question 20

If you are the program manager and the agency strategic plan has an objective that includes 3,500 "units of service" and the total cost for the program is $391,143. Which of the following is the correct cost per unit of service for that program?

Accepted Answer

A)   $1, 117.60
B)     $$387,643.
C)   $50.00
D)   $111.76

Exam 12: Developing Line-Item, Functional, and Program Budgeting Systems

Every item of proposed expense can be classified as either direct cost or an indirect cost

Which of the following is NOT one of the steps to move from a line-item budget system to a functional or program budgeting system.

There is no best cost allocation methodology for a human service agency or program to use in allocating indirect costs. Which of the following statements is INCORRECT?

The work of the executive director in a human service agency benefits all agency programs and is an indirect cost. Her salary cannot be placed solely in any one program but is assigned to the __________.

All budget categories in a line-item budget should be operationally defined.

Which of the following is NOT a part of allocating indirect costs to the cost pool:

In human service agencies, functional, and program budgeting systems are generally developed only at the program level.

The type of programmatic and financial data and information provided by program budgeting systems is extremely useful for planning purposes.

The actual ________ of a budget reduction on the operations of a human service agency or program is equal to the amount of the necessary reduction multiplied by the number of months elapsed in the fiscal year.

The creation of a line-item budgeting system for a human service agency or program involves three of the following steps. Which of the following is NOT a step commonly used in creating a line-item budget?

The time period, called a fiscal year, usually follows one of three time frames. Which of the following is NOT considered to be one of those time frames?

By relating costs to planned outcomes (results, accomplishments, or impacts) a human service agency can determine all EXCEPT which of the following:

The revenue and expense categories (line-items) in a line-item budget format are designed to be mutually exclusive and exhaustive.

A human service agency or program line-item budgeting format does not need to include a complete presentation of all anticipated revenues and proposed expenses. It should include only those items that are already committed to the agency or program.

A ________ balanced budget is created when the management of a human service agency or program consciously overstates revenues or understates expenses.

Which of the following is NOT a part of the line-item budgetary process?

The knowledge of a program's true unit costs is necessary for which of the following:

True Line-item budgeting systems seek to bring consistency to the budgetary process and to provide a financial overview of the human service agency and its programs.

Direct costs are those that apply to the whole agency or all programs.

If you are the program manager and the agency strategic plan has an objective that includes 3,500 "units of service" and the total cost for the program is $391,143. Which of the following is the correct cost per unit of service for that program?