Question

Select the best answer.
1. Which of the following is likely to be a line item in a fire department's program budget but not its object classification budget?
a. Administrative salaries
b. Travel to conferences and training
c. Safety inspections
d. Acquisition of new equipment

2. Number of safety inspections performed by the Coast Guard would most likely be considered an
a. Input measure
b. Output measure
c. Outcome measure
d. Efficiency measure

3. Outcomes are frequently distinguished from outputs in that outcomes
a. Are more likely to have a quality dimension associated with them
b. Are more precise than outputs
c. Are more likely to foment conflict among employees
d. Cannot generally be quantified

4. Which of the following is not necessarily a desirable characteristic of outcome measures?
a. They should be precise
b. They should be long-term
c. They should be quantifiable
d. They should be measurable within a period sufficiently short to take corrective action

5. Which of the following is not characteristic of zero base budgeting?
a. It starts with the assumption that all activities within a program should be granted a zero increase unless evidence to the contrary is presented
b. All activities within a program, both new and proposed, are subject to review and ranking
c. It requires proposed funding increases to be tied to increases in outputs or outcomes
d. It requires assessment of the consequences of funding activities at various levels

6. Per GASB pronouncements, information on ''service efforts and accomplishments''
a. Should be reported in the ''management's discussion and analysis''
b. Should be reported in the notes to the financial statements
c. Should be reported as ''required supplementary information''
d. Need not be reported

7. The Government Performance and Results Act (1993) mandates that
a. Federal agencies develop and report explicit operational objectives and performance measures
b. Federal agencies meet specified Office of Management and Budget performance standards
c. The federal government report measures of service efforts and accomplishment in its comprehensive annual report
d. The Government Accountability Office incorporate a ''results'' audit as part of its annual financial examination of federal agencies

8. A primary disadvantage of preparing separate operating and capital budgets is
a. The distinction between a capital and an operating expenditure is often not clear
b. It increases the risk of violating the principle of ''inter-period equity''
c. It risks overlooking the impact of capital expenditures on operating expenditures
d. It leads organizations to favor operating expenditures, which have an immediate payoff, over capital expenditures, which have a long-term payoff

9. In selecting between two projects, both of which will provide the same noncash benefits (e.g., increasing firefighter response time)
a. It is preferable to use the 30-year Treasury rate as a discount rate
b. It would be inappropriate to use present-value analysis
c. It is necessary to express the benefits in dollars, so that they can be compared to the costs
d. It is appropriate to select the project with the smallest net discounted cash outflow (costs)

10. In selecting between two projects, both of which will provide different noncash benefits (e.g., increasing firefighter response time or improving a fire prevention program)
a. It is necessary (albeit difficult) to express the benefits in common terms (such as dollars), so that they can be compared to the costs
b. It would be inappropriate to use present-value analysis
c. The dollar value of a human life should be based on the ''human value'' tables of the American Actuarial Society
d. The focus of analysis should be mainly upon costs, in as much as there is no reliable measure of benefits



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  • CreatedAugust 13, 2014
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