Question 1

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

Line-item budgeting systems are designed to offer a clear, organized financial overview by categorizing expenses and revenues into specific lines or items, which helps in maintaining consistency and transparency in the budgetary process of human service agencies and their programs.

Question 2

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

Accepted Answer

The answer of The revenue and expense categories (line-items) in...

Question 3

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 line-item budgeting format for a human service agency or program should include a complete presentation of all anticipated revenues and proposed expenses, not just those items already committed, to provide a comprehensive overview of financial planning.

Question 4

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

Accepted Answer

Functional and program budgeting systems are typically developed at both the agency and program levels in human service agencies.

Question 5

The cost allocation plan format is the primary document used to derive a functional or program budget from a line-item budget.

Accepted Answer

A cost allocation plan format helps in distributing costs across different functions or programs, thus facilitating the derivation of functional or program budgets from the more detailed line-item budget.

Question 6

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

Accepted Answer

Direct costs can be directly traced to a specific product, service, or project (e.g., raw materials, labor directly involved in production), while indirect costs are not directly traceable to a specific item and are incurred for the benefit of multiple projects or services (e.g., utilities, rent, administrative salaries).

Question 7

Functional budget systems differ because they focus on outputs while program budgeting systems focus on outcomes.

Accepted Answer

Functional budget systems emphasize the outputs or activities of different departments, whereas program budgeting systems are designed to focus on the outcomes or results of specific programs.

Question 8

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

Accepted Answer

Program budgeting systems integrate financial data with programs or activities, allowing for a comprehensive analysis of how funds are allocated and used. This integration facilitates effective planning by providing detailed insights into both the costs associated with specific programs and the outcomes achieved, enabling more informed decision-making.

Question 9

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

Accepted Answer

Operationally defining each budget category ensures clarity and consistency in how funds are allocated and spent, facilitating better tracking and management of resources.

Question 10

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

Accepted Answer

Direct costs are specifically associated with a particular project, program, or activity, and can be directly attributed to it, unlike indirect costs which apply to multiple projects or the entire agency.

Question 11

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 12

___________ budgets are characterized by the use of standardized budget formats, common budget definitions and a structured budgetary process.

Accepted Answer

The answer of ___________ budgets are characterized by the use...

Question 13

Each category of ________ and ________ is operationally defined to provide guidance and ensure uniformity in the treatment of budget items.

Accepted Answer

The answer of Each category of ________ and ________ is...

Question 14

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 15

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 16

List and explain the four steps involved in the creation of a line-item budget.

Accepted Answer

The answer of List and explain the four steps involved...

Question 17

Functional budgeting systems are concerned with the outputs, efficiency and productivity of a human service agency's programs. 1) Define "functional budget system"; 2) Describe the categories of interest in a functional budget; 3) Give an example for each of the categories of interest.

Accepted Answer

The answer of Functional budgeting systems are concerned with the...

Question 18

Define "Indirect costs", give at least three examples of costs that are considered indirect costs, and explain how an indirect cost get allocated to programs.

Accepted Answer

The answer of Define "Indirect costs", give at least three...

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