CSET Financial Management & Budgeting 5

Question 1

A school district wants to evaluate whether its programs are achieving desired outcomes relative to their costs. Which analytical approach is most appropriate?

Accepted Answer

Cost-benefit analysis

Answer

Cost-benefit analysis compares the monetary value of program outcomes to their costs, helping decision-makers determine whether resources are producing sufficient results.

Question 2

Which of the following describes the 'supplemental' requirement under Title I funding rules?

Accepted Answer

Federal funds must increase the total resources available beyond the state/local baseline

Answer

The supplement, not supplant rule requires that Title I funds add to—not replace—the educational services that would be provided using state and local funds.

Question 3

What is the primary advantage of program-based budgeting over traditional line-item budgeting?

Accepted Answer

It links resource allocation directly to program goals and outcomes

Answer

Program-based budgeting organizes expenditures around programs and their objectives, making it easier to evaluate whether spending achieves educational goals.

Question 4

A district administrator is reviewing invoices before payment. This practice is an example of which type of internal control?

Accepted Answer

Preventive control

Answer

Reviewing invoices before payment is a preventive control designed to stop errors or unauthorized transactions before they occur.

Question 5

Which of the following is a characteristic of a fiscally stable school district?

Accepted Answer

Recurring revenues consistently exceeding recurring expenditures

Answer

Fiscal stability is indicated when recurring revenues reliably cover recurring expenditures, avoiding dependence on one-time funds for ongoing operations.

CSET Test Practice Test

CSET Test Practice Test

CSET Financial Management & Budgeting 5