Administration and Finance 1 Flashcards
6 cards from real CPRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Administration and Finance 1 flashcards as text
Which budgeting approach requires managers to justify every expense from zero each fiscal year rather than basing requests on prior-year spending?
Answer: Zero-based budgeting
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each cycle, requiring justification for all expenditures regardless of previous allocations, which helps eliminate outdated or inefficient spending.
A parks and recreation department that groups its staff by function—maintenance, programming, and aquatics—is using which type of organizational structure?
Answer: Functional structure
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.
What financial document summarizes an organization's revenues, expenditures, and net position at a specific point in time?
Answer: Balance sheet
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.
Which cost classification describes expenses such as facility rent and administrative salaries that remain constant regardless of program participation levels?
Answer: Fixed costs
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.
In parks administration, the process of comparing actual budget performance against planned figures to identify discrepancies is called:
Answer: Budget variance analysis
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.
Which principle states that a manager's span of authority should be limited to the number of subordinates they can effectively supervise?
Answer: Span of control principle
The span of control principle recognizes that each manager has a finite capacity to supervise employees effectively; exceeding that number reduces oversight quality and organizational performance.