Deck 10: Budgeting

Question 1

Which of these is a tangible factor?

A) History
B) Reputation
C) Staff
D) None of the above

Answer 1

Staff

Question 2

Which of these is an intangible factor?

A) History
B) Reputation
C) Strength of its board of directors
D) All of the above

Answer 2

All of the above

Question 3

Short-term plans primarily include:

A) Production
B) Financing
C) Control
D) All of the above

Answer 3

All of the above

Question 4

The authoritarian approach is often called _________________.

A) Top-down spending
B) Monopolistic practices
C) Top-down budgeting
D) Bottom-up strategizing

Question 5

The incremental-decremental approach starts with a(n) ______________ budget.

A) New
B) Outdated
C) Industry standard
D) Existing

Question 6

A program budget is an extension of the ____________________.

A) Line-item budget
B) Line-category budget
C) Line-ending budget
D) Zero-based budget

Question 7

A performance budget adds ______________ to a program budget.

A) Subcategories
B) Performance measures
C) Overhead
D) Cost of capital

Question 8

Static budgets use a ______________ level of activity.

A) Low
B) Flexible
C) Static
D) High

Question 9

An operating budget is comprised of a _______________ and a _______________.

A) Statistics budget; expense budget
B) Revenue budget; expense budget
C) Cost report; Expense report
D) Revenue budget; statistics budget

Question 10

A capital budget summarizes the major ______________ for the year.

A) Costs
B) Income
C) Variances
D) Purchases

Question 11

Budgets can never be modified.

Question 12

Cash budgets display all of the organization's projected cash inflows and outflows.

Question 13

Budgets do not need to be monitored for variances.

Question 14

Budgeting is rarely needed for established organizations.

Question 15

A program budget is the least detailed budget.

Question 16

Capital budgets are always larger for outpatient facilities.

Question 17

After the cost of labor, the next largest cost is the cost of supplies.

Question 18

Pro forma financial statements can't be subjected to the same analysis as other financial documents.

Question 19

Flexible budgets accommodate for multiple levels of activities.

Question 20

The statistics budget is the first budget to be prepared.