CPPO EXAM 4 2026 FINAL ASSESSMENT
STUDY GUIDE QUESTION BANK VERIFIED
ANSWERS A+
◉ Performance Budget are defined as. Answer: Relate expenditures
and revenues to workloads. They provide a mechanism to improve
the management of service delivery, with cost efficiency being the
principal indicator of managerial effectiveness. "This is what you are
expected to do and here's the money."
◉ Major weaknesses of performance budgets are. Answer: Unit
costs are not always meaningful indicators of progress toward goals
Separated activities assigned to performance units may not include
all the organizational actions that contribute to a particular output.
Benefits are not measured, as there are no indicators of inter-sector
efficiency
Inter-program efficiency cannot be established because unit cost
does not indicate the net value yielded by each program
,Funding requests for each activity consists of only a single estimate
based on lowest unit costs; performance budgeting does not
facilitate inter-program efficiency
◉ Program budgets are defined as:. Answer: related expenditures
and revenue to public goals. This is the most elaborate budget form.
They tend to be more long-range, with multi-year plans along with
budget requests. They are designed to have the greatest net benefit
for the cost.
◉ Major weaknesses of program budgets are:. Answer: Goals are
difficult to define and formulate
Goals are subject to change and programs must change when goals
change
For some goals, it is impossible to obtain measures of benefit and
objectives
Systemic evaluation of alternatives is subject to human limitations
and time and cost restraints
◉ Zero based budgets (ZBB) is defined as:. Answer: Relate
expenditures and revenues to workloads and organize budget
,presentations according to "decision packets" of cost centers for
which alternative levels of service delivery can be specified.
◉ Major weaknesses of Zero based budgets are:. Answer: Most
organizations will not give managers the required latitude needed to
make the ZBB work.
Without objective measurements of cost and benefits, the chief
executive cannot judge inter-sector and inter-program efficiency.
Without a program structure, decision makers cannot conduct
coherent analyses of alternatives.
Since activities in several decision units may contribute to the same
output, authority over services is diffused.
◉ Results oriented budget is defined as:. Answer: Budgeting that
attempts to link resource allocation decisions to performance
criteria that includes both output and outcome measures.
◉ Preparing an operational budget includes:. Answer: The budget
office of the agency prepares a policy overview, which includes
statement of priorities and goals of the budget and details economic
and policy assumptions.
, ◉ When determining service needs the following should be
considered:. Answer: Measuring demand (What is expected of my
department?)
Estimating staff needs (Do I have enough staff?)
Measuring workload (Take a look at what needs to be done and can
it be done with current staff and money)
Estimating operating expenses (Do I have enough money?)
◉ Four types of audits are:. Answer: Financial and compliance
Economy and efficiency
Program
Performance
◉ Financial and compliance audits are:. Answer: Performed by an
independent accounting firm with the main purpose being to detect
fraud.
◉ Economy and efficiency audits are:. Answer: Management or
operational audits. They examine administrative practices for
economy and cost efficiency and attempt to identify the cause of any
cost inefficiencies.
STUDY GUIDE QUESTION BANK VERIFIED
ANSWERS A+
◉ Performance Budget are defined as. Answer: Relate expenditures
and revenues to workloads. They provide a mechanism to improve
the management of service delivery, with cost efficiency being the
principal indicator of managerial effectiveness. "This is what you are
expected to do and here's the money."
◉ Major weaknesses of performance budgets are. Answer: Unit
costs are not always meaningful indicators of progress toward goals
Separated activities assigned to performance units may not include
all the organizational actions that contribute to a particular output.
Benefits are not measured, as there are no indicators of inter-sector
efficiency
Inter-program efficiency cannot be established because unit cost
does not indicate the net value yielded by each program
,Funding requests for each activity consists of only a single estimate
based on lowest unit costs; performance budgeting does not
facilitate inter-program efficiency
◉ Program budgets are defined as:. Answer: related expenditures
and revenue to public goals. This is the most elaborate budget form.
They tend to be more long-range, with multi-year plans along with
budget requests. They are designed to have the greatest net benefit
for the cost.
◉ Major weaknesses of program budgets are:. Answer: Goals are
difficult to define and formulate
Goals are subject to change and programs must change when goals
change
For some goals, it is impossible to obtain measures of benefit and
objectives
Systemic evaluation of alternatives is subject to human limitations
and time and cost restraints
◉ Zero based budgets (ZBB) is defined as:. Answer: Relate
expenditures and revenues to workloads and organize budget
,presentations according to "decision packets" of cost centers for
which alternative levels of service delivery can be specified.
◉ Major weaknesses of Zero based budgets are:. Answer: Most
organizations will not give managers the required latitude needed to
make the ZBB work.
Without objective measurements of cost and benefits, the chief
executive cannot judge inter-sector and inter-program efficiency.
Without a program structure, decision makers cannot conduct
coherent analyses of alternatives.
Since activities in several decision units may contribute to the same
output, authority over services is diffused.
◉ Results oriented budget is defined as:. Answer: Budgeting that
attempts to link resource allocation decisions to performance
criteria that includes both output and outcome measures.
◉ Preparing an operational budget includes:. Answer: The budget
office of the agency prepares a policy overview, which includes
statement of priorities and goals of the budget and details economic
and policy assumptions.
, ◉ When determining service needs the following should be
considered:. Answer: Measuring demand (What is expected of my
department?)
Estimating staff needs (Do I have enough staff?)
Measuring workload (Take a look at what needs to be done and can
it be done with current staff and money)
Estimating operating expenses (Do I have enough money?)
◉ Four types of audits are:. Answer: Financial and compliance
Economy and efficiency
Program
Performance
◉ Financial and compliance audits are:. Answer: Performed by an
independent accounting firm with the main purpose being to detect
fraud.
◉ Economy and efficiency audits are:. Answer: Management or
operational audits. They examine administrative practices for
economy and cost efficiency and attempt to identify the cause of any
cost inefficiencies.
