Financial Management for Public,
Health, & Not-for-Profit Organizations,
Ch 1-3
Operating budget -correct answer_You want to show the monthly pattern of revenues,
support and expenses resulting in either a surplus or deficit on an accrual basis Flexible
budget -correct answer_You want to prepare a budget at three different sensitivity levels
of pricing to see what surplus.loss might look like at each of those different price levels
Cash budget -correct answer_You are interested in determining the cash inflows, cash
outflows, and ending balance of cash for each month Performance budget -correct
answer_You want to track the organization's performance on several key metrics that do
NOT directly relate to financial performance Zero-based budget -correct answer_In order
to reduce expenditures and maintain budgetary efficiency, you create a budget where all
of the last period's line items are set to zero and justifications (ie: decision packages) must
be made to fund each of the line items with the desired amounts Capital budget -correct
answer_You prepare this kind of budget in order to determine whether to invest in a
long-lived asset which will benefit the organization over a number of years Special (ad-hoc)
budget -correct answer_Because it was not part of the Operating Budget, you prepare this
budget when an unforeseen opportunity or problem arises and requires financial analysis
Incremental budgeting -correct answer_This budgeting technique looks at the revenues
and expenditures in last year's line items and adjusts them up or down for things like
inflation
Health, & Not-for-Profit Organizations,
Ch 1-3
Operating budget -correct answer_You want to show the monthly pattern of revenues,
support and expenses resulting in either a surplus or deficit on an accrual basis Flexible
budget -correct answer_You want to prepare a budget at three different sensitivity levels
of pricing to see what surplus.loss might look like at each of those different price levels
Cash budget -correct answer_You are interested in determining the cash inflows, cash
outflows, and ending balance of cash for each month Performance budget -correct
answer_You want to track the organization's performance on several key metrics that do
NOT directly relate to financial performance Zero-based budget -correct answer_In order
to reduce expenditures and maintain budgetary efficiency, you create a budget where all
of the last period's line items are set to zero and justifications (ie: decision packages) must
be made to fund each of the line items with the desired amounts Capital budget -correct
answer_You prepare this kind of budget in order to determine whether to invest in a
long-lived asset which will benefit the organization over a number of years Special (ad-hoc)
budget -correct answer_Because it was not part of the Operating Budget, you prepare this
budget when an unforeseen opportunity or problem arises and requires financial analysis
Incremental budgeting -correct answer_This budgeting technique looks at the revenues
and expenditures in last year's line items and adjusts them up or down for things like
inflation
