Saudi Electronic University

HCM 213

Chapter 10

Multiple Choice

1)Which of these is a tangible factor?

1. 1. History
   2. Reputation
   3. Staff
   4. None of the above
2. Which of these is an intangible factor?
   1. History
   2. Reputation
   3. Strength of its board of directors
   4. All of the above
3. Short-term plans primarily include:
   1. Production
   2. Financing
   3. Control
   4. All of the above

4. The authoritarian approach is often called                                          .
   1. Top-down spending
   2. Monopolistic practices
   3. Top-down budgeting
   4. Bottom-up strategizing
5. The incremental-decremental approach starts with a(n)                                  budget.
   1. New
   2. Outdated
   3. Industry standard
   4. Existing
6. A program budget is an extension of the                                                .
   1. Line-item budget
   2. Line-category budget
   3. Line-ending budget
   4. Zero-based budget
7. A performance budget adds                                   to a program budget.
   1. Subcategories
   2. Performance measures
   3. Overhead
   4. Cost of capital
8. Static budgets use a                                   level of activity.
   1. Low
   2. Flexible
   3. Static
   4. High
9. An operating budget is comprised of a                                     and a                                      .
   1. Statistics budget; expense budget
   2. Revenue budget; expense budget
   3. Cost report; Expense report
   4. Revenue budget; statistics budget

10. A capital budget summarizes the major                                   for the year.
    1. Costs
    2. Income
    3. Variances
    4. Purchases

True or False

1. Budgets can never be modified. True or False?

2. Cash budgets display all of the organization’s projected cash inflows and outflows. True or False?

3. Budgets do not need to be monitored for variances. True or False?

4. Budgeting is rarely needed for established organizations. True or False?

5. A program budget is the least detailed budget. True or False?

6. Capital budgets are always larger for outpatient facilities. True or False?

7. After the cost of labor, the next largest cost is the cost of supplies. True or False?

8. Pro forma financial statements can’t be subjected to the same analysis as other financial documents. True or False?

9. Flexible budgets accommodate for multiple levels of activities. True or False?

10. The statistics budget is the first budget to be prepared. True or False?