CGFO Budgeting Practices 4

Question 1

In a performance budget, 'efficiency measures' are BEST described as:

Accepted Answer

The ratio of inputs (cost/resources) to outputs (units of service delivered)

Answer

Efficiency measures relate the cost of inputs to the number of service units produced, such as cost per lane mile repaired or cost per permit issued.

Question 2

Which type of fund is typically used to account for resources legally restricted for debt repayment?

Accepted Answer

Debt Service Fund

Answer

Debt Service Funds are used to accumulate resources for the payment of principal and interest on long-term debt.

Question 3

A government adopts a budget on October 1 but does not formally adopt it until December 15. The GASB requirement for budget-to-actual reporting:

Accepted Answer

Still requires reporting if a budget is subsequently adopted before year-end

Answer

GASB requires budget-to-actual comparisons for governmental fund types with legally adopted annual budgets, regardless of when during the year adoption occurs.

Question 4

Which budgeting concept allocates overhead or central service costs to individual departments or programs?

Accepted Answer

Cost allocation

Answer

Cost allocation distributes indirect costs (such as IT, HR, or legal) from central service departments to operating departments that benefit from those services.

Question 5

A city manager proposes a 'priority-based budgeting' approach. This model primarily:

Accepted Answer

Funds programs in order of their alignment with community priorities and available resources

Answer

Priority-based budgeting ranks programs and services according to community priorities, funding higher-priority items first as resources allow.

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Budgeting Practices 4