The Following Are Key Terms in Chapter 12 That Relate

question 40

Short Answer

The following are key terms in Chapter 12 that relate to budgeting of government services:
A.Efficiency measures
B.Effectiveness measures
C.Planning-programming-budgeting system
D.Zero-based budgeting
E.Program budgeting
F.Flexible budgeting
G.Incremental budgeting
H.Budget calendar
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.
_____ 1. A budget in which each activity and the amounts of resources requested for each activity must be justified each year
_____ 2. A budget that is derived from the current year budget by multiplying a factor across all line-items
_____ 3. A budgeting approach popular in the 1960s that integrates various elements of planning for programs
_____ 4. Measures that relate costs to outcomes
_____ 5. A budget in which resource inputs and service outputs are identified by programs

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Definitions:

Product Costs

The total expenses incurred in creating a product, including direct materials, direct labor, and manufacturing overhead.

Carrying Cost

The total cost of holding inventory, including storage, handling, insurance, and opportunity costs, among others.

EOQ

The calculation used by businesses to find the ideal number of units to order that minimizes the overall costs related to inventory, including storage and ordering costs.

Quantity Discounts

Price reductions offered to buyers who purchase in bulk or exceed specified quantities, incentivizing larger orders.