CPRP - Certified Park and Recreation Professional Administration and Finance 1

Question 1

Which budgeting approach requires managers to justify every expense from zero each fiscal year rather than basing requests on prior-year spending?

Accepted Answer

Zero-based budgeting

Answer

Zero-based budgeting (ZBB) starts from a 'zero base' each cycle, requiring justification for all expenditures regardless of previous allocations, which helps eliminate outdated or inefficient spending.

Question 2

A parks and recreation department that groups its staff by function—maintenance, programming, and aquatics—is using which type of organizational structure?

Accepted Answer

Functional structure

Answer

A functional structure organizes employees by specialized departments or functions (e.g., maintenance, programming), allowing expertise to be concentrated and resources shared within each specialty area.

Question 3

What financial document summarizes an organization's revenues, expenditures, and net position at a specific point in time?

Accepted Answer

Balance sheet

Answer

A balance sheet (statement of net position) presents assets, liabilities, and equity at a single point in time, giving a snapshot of the organization's financial standing on that date.

Question 4

Which cost classification describes expenses such as facility rent and administrative salaries that remain constant regardless of program participation levels?

Accepted Answer

Fixed costs

Answer

Fixed costs do not change with the volume of activity or number of participants. Rent and salaried staff are classic examples because they must be paid whether programs run at 10% or 100% capacity.

Question 5

In parks administration, the process of comparing actual budget performance against planned figures to identify discrepancies is called:

Accepted Answer

Budget variance analysis

Answer

Budget variance analysis measures the difference (variance) between budgeted amounts and actual results, enabling managers to identify overspending, underspending, or revenue shortfalls and take corrective action.

CPRP - Certified Park and Recreation Professional Practice Test

CPRP - Certified Park and Recreation Professional Practice Test

CPRP - Certified Park and Recreation Professional Administration and Finance 1