ACC ACC Budget & Resource Management 1 — Questions and Answers
Question 1: When preparing an annual activity department budget, an activity consultant should first:
- Review prior year expenditures and program outcomes (Correct answer)
- Request the largest budget possible as a starting point
- Copy the previous year's budget without modification
- Wait for administration to assign a fixed amount
Correct answer: Review prior year expenditures and program outcomes
Reviewing past spending and outcomes provides an evidence base for justifying budget needs accurately.
Question 2: Which expense category is typically considered a capital expenditure in an activity department budget?
- Purchase of a large-screen TV for the activity room (Correct answer)
- Monthly supply of craft materials
- Staff overtime wages
- Printing costs for activity calendars
Correct answer: Purchase of a large-screen TV for the activity room
Capital expenditures are major purchases of durable assets like equipment, while consumables and wages are operating expenses.
Question 3: An activity consultant notices the department consistently overspends on supplies. The best corrective action is to:
- Analyze supply usage patterns and implement a tracking system (Correct answer)
- Request a budget increase every quarter
- Stop purchasing supplies until the next fiscal year
- Blame procurement for ordering errors
Correct answer: Analyze supply usage patterns and implement a tracking system
Tracking usage data helps identify waste or over-ordering so the consultant can implement targeted cost controls.
Question 4: Grant funding obtained for an activity program should be managed by:
- Following the grant's specified terms, tracking expenditures, and reporting outcomes to the funder (Correct answer)
- Pooling it with general operating funds for flexibility
- Spending it as quickly as possible to demonstrate need
- Delegating all decisions to administration
Correct answer: Following the grant's specified terms, tracking expenditures, and reporting outcomes to the funder
Grant funds must be used according to funder specifications, with documented expenditures and required outcome reports.
Question 5: Which approach best stretches limited activity department resources?
- Partnering with community organizations for donated supplies and volunteer time (Correct answer)
- Purchasing only premium branded materials
- Expanding staff hours without budget approval
- Reducing programming to save money
Correct answer: Partnering with community organizations for donated supplies and volunteer time
Community partnerships bring in resources at little or no cost, maximizing programming without increasing the budget.
Question 6: A cost-benefit analysis of an activity program helps administration by:
- Demonstrating the program's value relative to its financial investment (Correct answer)
- Proving that activities are inexpensive
- Justifying staff reductions in the department
- Replacing the need for program evaluations
Correct answer: Demonstrating the program's value relative to its financial investment
Cost-benefit analysis quantifies the outcomes generated per dollar spent, helping justify the department's budget to administrators.
ACC ACC Budget & Resource Management 1
When preparing an annual activity department budget, an activity consultant should first: