Deck 8: Budget Planning and Implementation

Question 1

The budget category that cannot be cut or reduced is __________________.

A) travel and in-service education
B) computer software licensing agreements
C) renovations
D) equipment maintenance and repair

Answer 1

B

Question 2

Given the following standards, calculate the number of full-time equivalents (FTE) needed:
One FTE: 480 minutes per work day
Work standard: 30 minutes per request
Volume per day: 40 requests
FTE needed: ______________

A) 1.0
B) 1.5
C) 2.0
D) 2.5

Answer 2

D

Question 3

The standard classification of expenditures and other budget transactions is called ____________.

A) the uniform code of accounts
B) the milestone budget
C) administrative cost centers
D) responsibility centers

Answer 3

A

Question 4

The approach to budgeting in which the financial database of the immediate past year is increased by some given percentage for the coming year is termed ______________.

A) milestone budgeting
B) incremental budgeting
C) zero-based budgeting
D) benchmark budgeting

Question 5

The planning approach usually associated with budgeting is ___________.

A) overaim
B) underaim
C) vagueness
D) maximizing

Question 6

Which of the following wage and salary considerations is an impersonal cost?

A) Merit increases
B) Number of years in job
C) Labor union contract wage rates
D) Anniversary of hire raise

Question 7

Direct expenses include all of the following EXCEPT _______________.

A) equipment depreciation
B) wages and salaries
C) educational travel and seminars
D) equipment purchases

Question 8

In milestone budgeting, the budget periods are usually divided into equal cycles throughout the project (e.g., three-month periods).

Question 9

The best type of maintenance and repair plan for a department with mix of new and older equipment is the fee-for-service plan.

Question 10

In reviewing budget variances for the current budget year, a manager would give special attention to a line item that is over budget for the review period as well as over budget for the year.