CTM Budget & Resource Management Flashcards

Which budgeting approach starts from zero each budget period and requires justification for all expenses?

Answer: Zero-based budgeting

Zero-based budgeting requires managers to justify all expenses from scratch each period rather than basing budgets on prior year spending.

What is the primary purpose of a cost-benefit analysis in training budget planning?

Answer: To evaluate whether training investment returns exceed its costs

Cost-benefit analysis determines whether the financial return from training programs justifies the expenditure.

Which type of training cost is associated with lost productivity while employees attend training?

Answer: Opportunity costs

Opportunity costs represent the value of lost productivity or other foregone benefits when employees are away from their regular duties for training.

A training manager's annual budget is $200,000 and actual spending is $180,000. What is the budget variance?

Answer: $20,000 favorable

A budget variance of $20,000 favorable means actual costs were $20,000 less than budgeted, which is generally a positive outcome.

Which document formally authorizes training expenditures and outlines funding sources?

Answer: Approved budget plan

An approved budget plan formally authorizes spending and identifies where funds will come from for training activities.

What does ROI stand for in the context of training budget management?

Answer: Return on Investment

ROI (Return on Investment) measures the financial gain from training relative to its cost, expressed as a percentage.