Podcast
Questions and Answers
What is the key difference between a general budget and a special budget?
What is the key difference between a general budget and a special budget?
- General budgets are more complex to prepare and administer, while special budgets are simpler.
- General budgets are prepared by the executive branch, while special budgets are prepared by the legislative branch.
- General budgets are for governmental activities, while special budgets are for other funds. (correct)
- General budgets have a fixed total dollar amount, while special budgets have a flexible budget.
What is the main advantage of a fixed budget over a flexible budget?
What is the main advantage of a fixed budget over a flexible budget?
- Fixed budgets are simpler to prepare and administer, and are more understood. (correct)
- Fixed budgets allow for greater discretion of executives and their subordinates.
- Fixed budgets are more realistic when changes in quantities of goods or services occur.
- Fixed budgets can be more easily revised by the legislative branch prior to approval.
Which of the following statements about flexible budgets is correct?
Which of the following statements about flexible budgets is correct?
- Flexible budgets are more important for legislation control to limit the discretion of executives.
- Flexible budgets are less realistic when changes in quantities of goods or services occur.
- Flexible budgets allow the dollar amount to increase if more units of goods and services are desired. (correct)
- Flexible budgets fix the total dollar amount and cannot be exceeded.
Who is typically responsible for preparing the budget?
Who is typically responsible for preparing the budget?
What is the key difference between governmental and non-governmental budgets mentioned in the text?
What is the key difference between governmental and non-governmental budgets mentioned in the text?
What is the main purpose of a fixed budget, according to the text?
What is the main purpose of a fixed budget, according to the text?
What is the main purpose of the performance budget approach described in the text?
What is the main purpose of the performance budget approach described in the text?
What is the key step in determining the budget for a government service or activity?
What is the key step in determining the budget for a government service or activity?
What is the main limitation of the performance budget approach described in the text?
What is the main limitation of the performance budget approach described in the text?
How does the Planning-Programming-Budgeting (PPB) approach differ from the performance budget approach described in the text?
How does the Planning-Programming-Budgeting (PPB) approach differ from the performance budget approach described in the text?
What is the key advantage of the PPB approach over the performance budget approach mentioned in the text?
What is the key advantage of the PPB approach over the performance budget approach mentioned in the text?
What is the primary focus of performance budgeting?
What is the primary focus of performance budgeting?
Which of the following is NOT a characteristic of modern (rational) approaches to budgeting?
Which of the following is NOT a characteristic of modern (rational) approaches to budgeting?
Which of the following statements best describes the concept of 'inputs' in the context of modern budgeting approaches?
Which of the following statements best describes the concept of 'inputs' in the context of modern budgeting approaches?
What is the primary concern of modern (rational) approaches to budgeting regarding outputs?
What is the primary concern of modern (rational) approaches to budgeting regarding outputs?
Which of the following statements best represents the 'big-picture' idea emphasized in modern budgeting approaches?
Which of the following statements best represents the 'big-picture' idea emphasized in modern budgeting approaches?
