Cppb Exam With Verified Solutions

budgeting - Answer the allocation of scarce resources among competing demands allotment - Answer controls the rate of spending authorized by an appropriation allocation - Answer controls specific use of the monies appropriated cash basis accounting - Answer income is not counted until cash (or check) is actually received, and expenses are not counted until they are actually paid. accrual basis accounting - Answer Transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. encumber funds - Answer To set aside or commit funds for a specified future expenditure. policy document - Answer a good budget should articulate the program priorities and goals operations guide - Answer a good budget should indicate the allocation of resources and the performance objectives and measures of the various departments, programs, and activities. financial plan - Answer a good financial plant or budget should indicate the sources of revenue or any debt financing communications device - Answer a good budget should stimulate dialogue among the public about important budge issues fund - Answer an independent fiscal entity with assets, liabilities, reserves, a residual balance or equity, and revenues and expenditures for undertaking activities. expendable funds - Answer the authorization for spending expires at the end of the fiscal period non-expendable or revolving funds - Answer spending beyond the fiscal year is allowed with reauthorization GAAP (generally accepted accounting principles) - Answer uniform minimum standard for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles. governmental funds (how are they used?) - Answer finance the activities most citizens associate with governments (police, fire, procurement, public works) governmental funds (breakdown) - Answer - general funds - special revenue funds - capital project funds - debt service funds general funds - Answer used to track revenues and expenditures that support all services not assigned to other funds special revenue funds - Answer provide services financed from various specifically designated revenue sources, such as recreation fees used to support a specific activity capital project funds - Answer used to acquire major assets with a useful life of more than one year, which may be financed by some form of long-term debt debt service fund - Answer receive resources from other funds, taxes, grants, or proceeds from long-term debt and are used to pay the principal and interest on the debt. proprietary funds (when are they used?) - Answer used when governments engage in activities similar to private business proprietary funds (what is the breakdown?) - Answer - enterprise funds - internal service funds enterprise funds - Answer control various utilities (water, water reclamation, storm water, electric) and other entities providing service financed through user charges internal service funds - Answer used by governmental organizations that provide services to other units of the government by charging fees to cover their operating costs fiduciary funds - Answer allow the government to act as a custodian of assets that must be disbursed to individual, private, and public entities, or to other funds. Ex: pension funds and the collection of lottery proceeds for distribution. benchmarking - Answer - a process in which organizations measure various aspects of their processes in relation to best practice, usually within their own sector - should be used continually to ensure that the benefits of performing a process outweighs the costs. process alignment to organization goals - Answer goals should be the key driver for any process. All processes, people and resources should be aligned to business goals. process first - Answer process improvement focuses on incorporating cost-effective and goal-oriented processes. The purpose is to eliminate non-value-added activities and focus on value-added activities customer focus - Answer changing customer needs emphasize the importance of processes being aligned to achieve higher customer satisfaction. benchmark regularly - Answer benchmarks must be quantifiable, attainable, and realistic establish who owns a process - Answer process owners must be placed in charge of a process, be responsible for the performance and changes in the process, and be responsible for the success or failure of a process. build control points into a process - Answer there should be frequent points where the process owners and customers/stakeholders decide if the process is meeting current benchmarks and what they should do to improve the process. This includes halting the process if it fails to meet realistic benchmarks. standardize similar processes - Answer a standardized system of preparing processes saves time, effort, staff hours, and money make changes now - Answer the change process should be done repeatedly, not merely once. Waiting for a perfect solution would mean no solution. use the right measures - Answer "don't waste time taking process measurements if they are not going to be used to improve the process. The process slogan is worth remembering: "No process without measurement, not measurement without analysis, not analysis without action."" Six Sigma - Answer seeks to improve the quality of process outputs by identifying and removing the causes of errors and minimizing variability in business processes. Lean Thinking - Answer a method that focuses on providing service in the most efficient manner by improving flow and eliminating waste ISO 9000 - Answer a family of standards and guidelines for quality in the manufacturing and service industries from the International Organization for Standardization. Total Quality Management (TQM) - Answer a management philosophy that seeks to integrate all organizational functions to focus on meeting customer needs and organizational objectives. Just-in-Time (JIT) - Answer its basic tenet is the elimination of waste: the waste of overproduction, unneeded motion, transporation, excessive inventory and production and labor time. benchmarking - Answer a process whereby a procurement organization identifies worldclass or best in class organizations and then compares its practices, policies and performance outcomes against those organizations standard - Answer defined as the result of a particular standardization effort, approved by the recognized authority. standardization - Answer the adoption of a single product or group of products to be used by different organizations or all parts of one organization. simplification program - Answer involves screening the agency's inventory in order to determine which items should be consolidated, updated or no longer maintained in inventory. Its intent is to intentionall reduce the number and variety of inventory items and eliminate duplication. Standardization Committee - Answer used to create standards Sharp practices - Answer typically illustrated as evasion and indirect misrepresentation, just short of actual fraud. Should be avoided. Code of Ethics - Answer - Responsibility to your employer - Conflict of interest (avoid) - Perception (is fact) - Gratuities (don't take them) - Confidential information (keep it) - Relationship w/the supplier (keep it professional) - Relationships w/other agencies and organizations (don't exert leverage) - Relationship w/professional purchasing organizations and associations (represent the organization in a professional and ethical manner) cost-based pricing - Answer a margin of profit that is added to labor, material, and overhead costs. market-based pricing - Answer focuses on the supply and demand principle. supply and demand - Answer the qty of goods available for sale at a given price, and the lvl of consumer need for those goods at a given price. value-based pricing - Answer based on the perceived or actual value gained by the buyer. market-oriented pricing - Answer price setting based upon analysis and research compiled from the targeted market. Ex: a manu may offer a basic, no-frills model at the low end of the price spectrum, a mid-range model w/limited upgrades designed to appeal to a broad base of consumers, and a luxury model with many features focused on the high-end market. Prices are defined according to the range of the quality of the product or svc provided by the supplier. total cost of ownership (TCO) (measure) - Answer -a measure of all of the cost components associated with the procurement of a product or service total cost of ownership (TCO) (sum) - Answer - the sum of all fixed and variable costs attributed to a product or service total cost of ownership (TCO) (philosophy) - Answer - a philosophy for understanding all supply chain related costs of doing business with a particular supplier for a particular good or service. make, lease, or buy concepts (3 principles) - Answer - compare apples to apples - evaluate only costs that differ - assure costs evaluated are for the same level of service and quality four-step approach to make or buy analysis - Answer 1. define outputs to be analyzed 2. determine costs to be saved using an outside provider 3. compute cost of contracting from private sector 4. compare difference in net cost and made the final decision. operating leases - Answer - short term - fixed period of time much less than the life of the equipment - used for items w/ rapid obsolescence - used when budget won't allow purchase financial leases - Answer - long-term - a fixed period of time just short of approx life of the equipmnet. Assignment clauses are often included in bids and contracts. What are they and why do we need them? - Answer An assignment of contract occurs when one party to an existing contract (the "assignor") hands off the contract's obligations and benefits to another party (the "assignee"). They are needed in order to allow or disallow the handing off of a contract. three key challenges in inventory management - Answer - demand level - supplier lead time