CPRE Finance and Budgeting 3

Question 1

Which pricing strategy sets fees just high enough to cover direct costs but not overhead costs?

Accepted Answer

Partial cost recovery pricing

Answer

Full-cost recovery pricing

Answer

Market-rate pricing

Answer

Subsidized pricing

Question 2

A park district's operating budget levy rate is most directly limited by:

Accepted Answer

State constitutional or statutory tax caps

Answer

GASB standards

Answer

Federal OMB guidelines

Answer

The park district's bond rating

Question 3

In grant management, a match requirement means the agency must:

Accepted Answer

Contribute a specified share of project costs from non-federal sources

Answer

Repay the grant within a set timeframe

Answer

Submit quarterly financial reports

Answer

Hire a certified grant administrator

Question 4

Which financial metric best indicates whether a recreation program is covering its variable costs?

Accepted Answer

Contribution margin

Answer

Net income

Answer

Cash flow from operations

Answer

Debt service coverage ratio

Question 5

A park agency's fund balance policy should specify a minimum reserve level expressed as a percentage of:

Accepted Answer

Annual operating expenditures

Answer

Total long-term debt

Answer

Capital assets

Answer

Gross revenues

Question 6

An internal service fund in a park agency is used to:

Accepted Answer

Provide centralized services to other departments and charge them for use

Answer

Account for donated assets

Answer

Segregate restricted grant money

Answer

Record enterprise facility revenues