Cost Control & Resource Allocation Flashcards
6 cards from real CBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Cost Control & Resource Allocation flashcards as text
What is the primary purpose of cost control in budgeting?
Answer: To ensure expenses align with allocations
Cost control helps ensure that organizational spending stays within budgeted limits, improving financial efficiency and accountability.
Which of the following is a common method of resource allocation in budgeting?
Answer: Priority-based budgeting
Priority-based budgeting allocates resources according to the strategic importance of programs, ensuring funding supports organizational goals.
How can a variance report assist in cost control?
Answer: They identify budget deviations
Variance reports highlight differences between budgeted and actual figures, allowing managers to investigate and correct spending issues.
Which technique helps allocate limited resources to the most critical activities?
Answer: Cost-benefit analysis
Cost-benefit analysis evaluates the return on investment of each activity, guiding managers to allocate resources to the highest-impact areas.
What is an effective way to manage unexpected costs during a project?
Answer: Using contingency reserves
Contingency funds provide a financial buffer to address unplanned costs, preventing disruptions to project execution.
Why is monitoring resource utilization important?
Answer: To ensure efficient use of assets
Tracking how resources are used ensures they are applied efficiently, reducing waste and supporting better decision-making.