51) For each of the following definitions, indicate the key term from the list that best matches by
placing the appropriate definition.
A. Efficiency measures
B. Effectiveness measures
C. Planning-programming-budgeting system
D. Zero-based budgeting
E. Program budgeting
F. Flexible budgeting
G. Incremental budgeting
H. Budget calendar
________ 1. A budget in which each activity and the amounts of resources requested for each
activity must be justified each year
________ 2. A budget that is derived from the current year budget by adding or subtracting
amounts expected to be required by line-items
________ 3. A budgeting approach that integrates various elements of planning for programs
________ 4. Measures that relate efforts to accomplishments
________ 5. A budget in which resource inputs and service outputs are identified by programs
52) For each of the following definitions, indicate the key term from the list that best matches by
placing the appropriate definition.
A. Allowable costs
B. Cost principle
C. Cost objective
D. Indirect costs
E. Direct costs
F. Activity-based costing
________ 1. A system that identifies specific costs that drive the cost of service or production
activities
________ 2. Costs incurred that cannot be identified specifically with a cost objective
________ 3. Costs that meet specific criteria determined by the resource provider
________ 4. A program, function, activity, award, organizational subdivision, contract, or work
unit established for the accumulation of costs
53) Are governments required to report their budgets externally? Explain.
54) Explain how strategic planning, budgeting, and performance measurement can be integrated in
a government and why this integration is desirable.
55) What budgeting approach requires justification for the inclusion of every activity each year?
Briefly describe this method and how it can be effective.
56) Explain what is required to develop an effective total quality management (TQM) program for
a government.
57) Under federal guidelines, when is a cost considered reasonable?
58) Describe what is meant by the direct costs of a program (for example, a fire prevention
program) and why it is important to distinguish direct costs from indirect costs.
59) Identify and define the three broad categories of service efforts and accomplishments (SEA)
measures.
60) The finance officer of a small city has heard that certain items of cost may be allowable under
federal grants, even though they were not incurred specifically for the grant. To what source could
the finance officer go to determine what costs are allowable under federal grants? Why do you
think the federal government specifies the allowability of costs?