EVALUATING A SINGLE PROJECT
COMPREHENSIVE EXAMINATION TEST
VERIFIED QUESTIONS AND ACCURATE
ANSWERS
●● Purpose of a Project Budget
Answer: Determines financial feasibility, allocates resources, supports
planning and decision-making, and provides accountability.
●● Key Components of a Project Budget
Answer: Personnel costs materials and supplies equipment/technology
travel costs evaluation costs and indirect costs.
●● Why Project Budgets Matter
Answer: Ensure resources are available prevent overspending justify
funding requests and support successful implementation.
●● Direct Costs
Answer: Costs specifically tied to a project and that would not exist in
the same way without it.
●● Examples of Direct Costs
, Answer: Project staff salaries program materials participant supplies
project-specific travel and evaluation consultant.
●● Question for Identifying Direct Costs
Answer: "Would this cost exist if the project didn't happen?"
●● Indirect Costs
Answer: Shared organizational expenses that support multiple programs.
●● Examples of Indirect Costs
Answer: Office rent utilities HR/payroll services administrative systems
and general supervision.
●● Question for Identifying Indirect Costs
Answer: "Is this cost shared across multiple programs?"
●● Why Distinguishing Direct and Indirect Costs Matters
Answer: Ensures accurate budgeting supports compliance prevents
double charging and meets funder requirements.
●● Golden Rule of Budgeting
Answer: Expenses must be allocable allowable reasonable/necessary and
consistent.
COMPREHENSIVE EXAMINATION TEST
VERIFIED QUESTIONS AND ACCURATE
ANSWERS
●● Purpose of a Project Budget
Answer: Determines financial feasibility, allocates resources, supports
planning and decision-making, and provides accountability.
●● Key Components of a Project Budget
Answer: Personnel costs materials and supplies equipment/technology
travel costs evaluation costs and indirect costs.
●● Why Project Budgets Matter
Answer: Ensure resources are available prevent overspending justify
funding requests and support successful implementation.
●● Direct Costs
Answer: Costs specifically tied to a project and that would not exist in
the same way without it.
●● Examples of Direct Costs
, Answer: Project staff salaries program materials participant supplies
project-specific travel and evaluation consultant.
●● Question for Identifying Direct Costs
Answer: "Would this cost exist if the project didn't happen?"
●● Indirect Costs
Answer: Shared organizational expenses that support multiple programs.
●● Examples of Indirect Costs
Answer: Office rent utilities HR/payroll services administrative systems
and general supervision.
●● Question for Identifying Indirect Costs
Answer: "Is this cost shared across multiple programs?"
●● Why Distinguishing Direct and Indirect Costs Matters
Answer: Ensures accurate budgeting supports compliance prevents
double charging and meets funder requirements.
●● Golden Rule of Budgeting
Answer: Expenses must be allocable allowable reasonable/necessary and
consistent.
