Because Both Functional and Program Budgeting Systems Are Concerned with Determining

question 35

Multiple Choice

Because both functional and program budgeting systems are concerned with determining the total cost of the program operated by a human service agency, they have implementation steps in common. Which of the following steps is NOT part of either the functional or program budgeting process?

• A) Identifying the outcomes to be measured following the budgeting process
• B) Creating the cost allocation plan format
• C) Identifying direct and indirect costs
• D) Allocating indirect costs to programs and determining the total cost of each program

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Definitions:

Manufacturing Cost Variance

The difference between the actual manufacturing costs and the standard or budgeted costs.

Actual Costs

The realized expenses incurred during the production or acquisition of goods and services.

Standard Costs

Predetermined costs for materials, labor, and overhead used as a benchmark to assess the performance of actual costs.

Direct Labor Time Variance

The difference between the estimated time to complete a job and the actual time taken, impacting manufacturing costs.