Chapter 8: Budgeting And Cost Control Flashcards
Developing funding requests as though it were the first time, and justifying everything, is called:
A. Justification funding
B. Incremental funding
C. Zero-based funding
D. Capital funding
C. Zero-based funding.
To avoid the facility department being an overhead drain, costs can be contained by:
A. setting up a chargeback system
B. Educating senior management
C. Planning for maintenance
D. Holding down variable costs
A. Setting up a chargeback system.
Facility managers are more likely to have control of a(n):
A. Investment center
B. Profit center
C. Capital budget
D. Operating budget
D. Operating budget.
Costs for maintenance of common spaces, lobbies, storage, or vacant spaces are called:
A. Variable costs
B. Indirectly attributable costs
C. Non-attributable costs
D. Attributable costs
B. Indirectly attributable costs.
Allowing reasonable exceptions to facilities standards is an example of:
A. Flexible application
B. Clarifying standards
C. Customer involvement
D. Appropriate enforcement
A. Flexible application.
All of the following are methods to track expenditures except:
A). Review of all projects and programs
B). Accurate budget compatible data
C). Changing cost centers for project overruns
D). Data generated in time to correct problems
C. Changing cost centers for project overruns
Fiscal and physical flexibility are severely limited by:
A. Special spaces
B. Modular walls and furniture
C. Compartmentation
D. Outsourcing
A. Special spaces.
Facility budgets are challenging to prepare because their costs are usually:
A. Difficult to justify
B. Consolidated under one funding Center
C. Scattered among several departments
D. Variable from day to day
C. Scattered among several departments.
Isolating budget components so that one item does not affect the approval of other items is called:
A. Fragmentation
B. Compartmentation
C. Justification
D. Separation
B. Compartmentation.
The ability to move funds from one cost center to another may depend on the:
A. Management’s perception of the facility department
B. Percentage of utility demand costs
C. Ratio of fixed to variable costs
D. Spending pattern of the facilities department
C. Ratio of fixed to variable costs
A good facility manager ensures that the budget is linked to the:
A. Strategic plan
B. Corporate plan
C. Space program
D. Facility specification
A. Strategic plan.
The value of capital assets provides the company with the ability to leverage:
A. Resources
B. Funds
C. Expenses
D. Interest
B. Funds.
From a facility management budgetary standpoint, sudden organizational changes are ____________ equipment breakdowns.
A. Significantly worse than
B. As difficult to handle as
C. Easier to deal with than
D. Inherently connected to
C. Easier to deal with than
