Finance and Budgeting Flashcards
6 cards from real CPRE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Finance and Budgeting flashcards as text
Which pricing strategy sets fees just high enough to cover direct costs but not overhead costs?
Answer: Partial cost recovery pricing
Partial cost recovery pricing covers direct costs but relies on tax subsidy or other funding to cover overhead and indirect costs.
A park district's operating budget levy rate is most directly limited by:
Answer: State constitutional or statutory tax caps
State constitutions and statutes typically impose tax rate limits or levy caps on local government agencies including park districts.
In grant management, a match requirement means the agency must:
Answer: Contribute a specified share of project costs from non-federal sources
A match requirement obligates the grantee to contribute a defined percentage of project costs using local or other non-federal funds.
Which financial metric best indicates whether a recreation program is covering its variable costs?
Answer: Contribution margin
Contribution margin (revenue minus variable costs) shows how much a program contributes toward covering fixed costs.
A park agency's fund balance policy should specify a minimum reserve level expressed as a percentage of:
Answer: Annual operating expenditures
Best practice is to maintain a minimum unassigned fund balance (commonly 15-25%) of annual operating expenditures.
An internal service fund in a park agency is used to:
Answer: Provide centralized services to other departments and charge them for use
Internal service funds finance and allocate the cost of services provided by one department to other departments within the same government.