ACC ACC Budget & Resource Management 2 — Questions and Answers
Question 1: When ordering activity supplies, an activity consultant should prioritize:
- Items that serve the highest number of residents across multiple programs (Correct answer)
- The most expensive materials to signal program quality
- Personal preferences of the activity director
- Novelty items with limited reuse potential
Correct answer: Items that serve the highest number of residents across multiple programs
Prioritizing versatile supplies that serve many residents maximizes the impact of limited budget dollars.
Question 2: Which financial document gives an activity consultant the clearest picture of current department spending versus plan?
- A budget variance report comparing actual to budgeted expenditures (Correct answer)
- The facility's annual tax filing
- A supply vendor invoice
- The activity calendar for the current month
Correct answer: A budget variance report comparing actual to budgeted expenditures
A budget variance report directly shows where actual spending deviates from planned amounts, enabling timely corrections.
Question 3: An activity department receives a donation of supplies from a local business. The consultant should:
- Document the donation, send a formal acknowledgment, and integrate items into programming (Correct answer)
- Use the items without recording them to avoid administrative burden
- Sell the donated items to fund other purchases
- Store the items indefinitely without using them
Correct answer: Document the donation, send a formal acknowledgment, and integrate items into programming
Documenting donations maintains accountability and acknowledgment fulfills ethical and sometimes legal obligations.
Question 4: Effective inventory management for activity supplies involves:
- Regular audits, first-in-first-out rotation, and minimum stock thresholds (Correct answer)
- Ordering large quantities only once a year
- Delegating all inventory tasks to volunteers
- Estimating needs based on memory alone
Correct answer: Regular audits, first-in-first-out rotation, and minimum stock thresholds
Systematic audits, proper rotation, and stock thresholds prevent shortages and waste in the activity supply chain.
Question 5: When a vendor offers a significant bulk discount on activity materials, the consultant should:
- Evaluate storage capacity, expiration dates, and cash flow before committing (Correct answer)
- Always purchase the maximum quantity offered
- Decline all bulk offers to maintain budget predictability
- Consult marketing before any purchase
Correct answer: Evaluate storage capacity, expiration dates, and cash flow before committing
Bulk purchasing is only cost-effective when storage, shelf life, and available cash flow support the decision.
Question 6: Which resource allocation method ensures the highest-priority activity programs receive funding first?
- Zero-based budgeting that ranks programs by resident need and outcomes (Correct answer)
- Distributing funds equally across all programs regardless of usage
- Allocating based solely on program tradition
- Funding only the newest programs each year
Correct answer: Zero-based budgeting that ranks programs by resident need and outcomes
Zero-based budgeting forces prioritization by justifying each program from scratch based on need and evidence of outcomes.
ACC ACC Budget & Resource Management 2
When ordering activity supplies, an activity consultant should prioritize: