Deck 11: Budget

Question 1

Liability insurance costs tend to be decreasing.

Answer 1

False

Question 2

A major portion of expense in a budget is personnel.

Answer 2

True

Question 3

The first step in the budget process is to list the goals for the year.

Answer 3

True

Question 4

The main method of budget control is having expenditures centralized and at least two people responsible for it.

Question 5

Fixed expenses are those that do not change over long periods of time.

Question 6

The director has primary responsibility for the budget process.

Question 7

Variable expenses are those over which a director has some control.

Question 8

There are two major sections to a budget: tuitions and expenses.

Question 9

Space costs of some kind are ever-present.

Question 10

Fringe benefits include unemployment insurance and vacation pay.

Question 11

A first-time operating budget must estimate income from all sources.

Question 12

Equipment is usually defined as expendable items in a budget.

Question 13

A budget justification explains why a particular item is necessary.

Question 14

Art materials and office and cleaning supplies are classified as variable expenses.

Question 15

The director should always hire a collection agency to collect unpaid tuition payments.

Question 16

Justifications for budget requests should be linked to the goals and objectives of a program.

Question 17

A yearly audit by an independent auditor is a necessary part of operating any business.

Question 18

A budget calendar is a time line for paying expenses.

Question 19

Personnel costs include the taxes you are required to pay to various governmental agencies.

Question 20

An audit is done for the purpose of determining whether there has been any fraud.

Question 21

Fixed expenses include

A)insurance.
B)taxes.
C)mortgage.
D)All of these answers.

Question 22

MATCHING
a.a statement of goals for one year, stated in financial terms
b.a schedule for compiling budget data
c.expenses that vary and over which the director has some control
d.expenses that do not vary, or change very little, over periods of time
e.mandated or voluntary benefits that are added to personnel expenses
f.largest portion of the budget
g.nonexpendable items that are not replaced in a short period of time
h.costs that cover rent or mortgage payments of the building
i.major source of income
j.the number of children who must be served in a program to generate enough income to cover costs
budget calendar

Question 23

Some schools charge registration fees that range from

A)$50 to $100.
B)$25 to $75.
C)$10 to $25.
D)$30 to $65.

Question 24

A budget is a

A)list of expenditures for a year.
B)commitment to better staff salaries.
C)statement of goals in financial terms.
D)simple method of controlling expenses.

Question 25

Which of the following is NOT a major step in the budget cycle?

A)assembling a total budget
B)hiring a director
C)publishing a trial budget
D)getting approval from the higher authority

Question 26

Variable expenses include

A)space costs.
B)equipment purchases.
C)insurance.
D)salaries.

Question 27

__________ is likely to be an expenditure in a budget.

A)All of these answers.
B)Transportation
C)Food
D)The cost of the space

Question 28

Salaries consume the largest portion of a budget, on average

A)90 percent.
B)65 percent.
C)75 percent.
D)80 percent.

Question 29

The item in a budget that does NOT fall under the category of other sources of income is

A)transportation fees
B)materials fee
C)tuition
D)contributions

Question 30

According to the Children's Defense Fund, the average salary of a child care worker is only $15,430 per year.

Question 31

The time frame in which a specific budget is in use is called the

A)fiscal year.
B)budget year.
C)operating year.
D)management year.

Question 32

According to the Children's Defense Fund, child care workers earn more than

A)funeral attendants.
B)gardeners.
C)bellhops.
D)garbage collectors.

Question 33

MATCHING
a.a statement of goals for one year, stated in financial terms
b.a schedule for compiling budget data
c.expenses that vary and over which the director has some control
d.expenses that do not vary, or change very little, over periods of time
e.mandated or voluntary benefits that are added to personnel expenses
f.largest portion of the budget
g.nonexpendable items that are not replaced in a short period of time
h.costs that cover rent or mortgage payments of the building
i.major source of income
j.the number of children who must be served in a program to generate enough income to cover costs
budget

Question 34

It is not important to determine what neighboring schools are charging for tuition.

Question 35

The consultant category of a budget might include

A)dentist
B)social worker
C)nutritionist
D)All of these choices are correct.

Question 36

Supplies and materials are a __________ expense.

A)variable
B)limited
C)fixed
D)large

Question 37

Expenses over which the director has some measure of control

A)transportation costs
B)variable expenses
C)building maintenance
D)electricity and heat

Question 38

Which of the following items should not be included in budget records as an aid to planning?

A)copies of taxes
B)budget correspondence
C)minutes of the budget review meeting
D)staff personnel records

Question 39

A budget analysis

A)checks the math calculations.
B)includes salary increases for staff.
C)compares current budget with the previous year.
D)calculates correct salaries.

Question 40

Budget records should include

A)copies of taxes and insurance costs.
B)budget correspondence.
C)copies of the annual report for three years.
D)all the above

Question 41

Expenses that the director has limited control over are called __________.

Question 42

Advertising your business through newspapers, brochures, fliers, and local radio is called __________.

Question 43

Income is best computed after __________.

Question 44

MATCHING
a.a statement of goals for one year, stated in financial terms
b.a schedule for compiling budget data
c.expenses that vary and over which the director has some control
d.expenses that do not vary, or change very little, over periods of time
e.mandated or voluntary benefits that are added to personnel expenses
f.largest portion of the budget
g.nonexpendable items that are not replaced in a short period of time
h.costs that cover rent or mortgage payments of the building
i.major source of income
j.the number of children who must be served in a program to generate enough income to cover costs
tuition

Question 45

Tricycles, garbage cans, and desks are all examples of __________.

Question 46

Staff salaries comprise the _____________portion of a budget- on average about ____ percent __________.

Question 47

MATCHING
a.a statement of goals for one year, stated in financial terms
b.a schedule for compiling budget data
c.expenses that vary and over which the director has some control
d.expenses that do not vary, or change very little, over periods of time
e.mandated or voluntary benefits that are added to personnel expenses
f.largest portion of the budget
g.nonexpendable items that are not replaced in a short period of time
h.costs that cover rent or mortgage payments of the building
i.major source of income
j.the number of children who must be served in a program to generate enough income to cover costs
fringe benefits

Question 48

MATCHING
a.a statement of goals for one year, stated in financial terms
b.a schedule for compiling budget data
c.expenses that vary and over which the director has some control
d.expenses that do not vary, or change very little, over periods of time
e.mandated or voluntary benefits that are added to personnel expenses
f.largest portion of the budget
g.nonexpendable items that are not replaced in a short period of time
h.costs that cover rent or mortgage payments of the building
i.major source of income
j.the number of children who must be served in a program to generate enough income to cover costs
6.salaries

Question 49

MATCHING
a.a statement of goals for one year, stated in financial terms
b.a schedule for compiling budget data
c.expenses that vary and over which the director has some control
d.expenses that do not vary, or change very little, over periods of time
e.mandated or voluntary benefits that are added to personnel expenses
f.largest portion of the budget
g.nonexpendable items that are not replaced in a short period of time
h.costs that cover rent or mortgage payments of the building
i.major source of income
j.the number of children who must be served in a program to generate enough income to cover costs
nonexpendable items

Question 50

MATCHING
a.a statement of goals for one year, stated in financial terms
b.a schedule for compiling budget data
c.expenses that vary and over which the director has some control
d.expenses that do not vary, or change very little, over periods of time
e.mandated or voluntary benefits that are added to personnel expenses
f.largest portion of the budget
g.nonexpendable items that are not replaced in a short period of time
h.costs that cover rent or mortgage payments of the building
i.major source of income
j.the number of children who must be served in a program to generate enough income to cover costs
variable expenses

Question 51

The largest portion of a budget for a child care program will be spent on __________.

Question 52

A major source of income in private centers is __________.

Question 53

Workers' compensation is considered a __________.

Question 54

One of the most difficult things to predict when planning a budget is __________.

Question 55

A budget is a statement of goals in __________ terms.

Question 56

MATCHING
a.a statement of goals for one year, stated in financial terms
b.a schedule for compiling budget data
c.expenses that vary and over which the director has some control
d.expenses that do not vary, or change very little, over periods of time
e.mandated or voluntary benefits that are added to personnel expenses
f.largest portion of the budget
g.nonexpendable items that are not replaced in a short period of time
h.costs that cover rent or mortgage payments of the building
i.major source of income
j.the number of children who must be served in a program to generate enough income to cover costs
fixed expenses

Question 57

MATCHING
a.a statement of goals for one year, stated in financial terms
b.a schedule for compiling budget data
c.expenses that vary and over which the director has some control
d.expenses that do not vary, or change very little, over periods of time
e.mandated or voluntary benefits that are added to personnel expenses
f.largest portion of the budget
g.nonexpendable items that are not replaced in a short period of time
h.costs that cover rent or mortgage payments of the building
i.major source of income
j.the number of children who must be served in a program to generate enough income to cover costs
space costs

Question 58

Water, gas, electricity, and telephone are examples of __________.

Question 59

The line item that includes bus service, the cost of gas, and journeys to and from field trips is called __________.

Question 60

The line item that includes all meals served at the school is called __________.

Question 61

Nonexpendable items are those that are not consumed in a short period of time.List examples.

Question 62

You should establish a budget __________ with deadlines for meeting exact milestones in the budget.

Question 63

__________ tuitions could be a cause of income shortfalls.

Question 64

Describe the process of budget analysis.

Question 65

Which items are included in the income portion of a budget?

Question 66

Who is the person primarily responsible for seeing that a program stays within budget?

Question 67

The income that can be generated from tuitions should be enough to cover the cost of __________.

Question 68

What is the purpose of an audit?

Question 69

It is not always accurate to calculate income by multiplying the number of children allowed by licensing with the amount of tuition charged.Why?

Question 70

List the controllable expenses that might be included in a budget.

Question 71

A child care center of almost any type is a form of __________.

Question 72

What are the items that might be included in a miscellaneous category?

Question 73

What is a budget calendar?

Question 74

Some programs charge fees above the tuition fee.They are __________, __________, and __________.

Question 75

One way to accommodate parents and to fill enrollment is to __________.

Question 76

Large corporate schools may design a logo to __________.

Question 77

The decisions concerning salaries for staff members are difficult.What are the things that should be considered?

Question 78

Outside persons who perform specific services, sometimes on a one-time-only basis, are called __________.

Question 79

The _____ is one of the most important written documents that a center has.