All of the following are objectives of activity-based cost (ABC) accounting in government except
To preserve, at a minimum, the present quality and availability of services.
To help find lower cost alternatives to providing services.
To link customer (taxpayer) satisfaction to improvements in the operating systems used to provide goods and services.
To make increases in the volume of services dependent on reducing costs.
Which of the following has contributed most to governments' increased interest in activity-based accounting?
GASB standards.
Implementation of innovative management approaches (such as TQM and SEA measures) in response to public demand for greater accountability and productivity.
Increased demand for high profile management tools to bolster the image of government.
The Single Audit Act of 1984 (and 1996 Amendments).
Balanced scorecards integrate all of the following into a document that can be shared with employees and stakeholders except
GASB financial reporting standards.
Internal business processes measures.
Nonfinancial measures, such as customer satisfaction.
Financial performance measures.
Which of the following kinds of cost accounting would be least useful for governmental budgeting?
Process.
Job order.
Standard.
Variable.
Which of the following costs incurred by a city for a federal grant program would likely be considered unallowable under OMB Circular A-87?
Depreciation expense on equipment.
The salary of the person administering the grant.
Salary expense of the mayor.
Advertising for a secretary to help the program administrator.
Which of the following costs would be allowable under OMB Circular A-87?
Advertising on the Internet by a defense contractor.
Lobbying for continuation of an educational program by the school administrator.
Indirect costs of the state legislature.
Depreciation expense on the equipment used in a federal research grant.
State and local governments and not-for-profit organizations that receive grants or contracts from the federal government should charge costs of these grants or contracts in conformity with
Cost Accounting Standards Board standards.
Office of Management and Budget cost circulars.
Financial Accounting Standards Board standards.
Governmental Accounting Standards Board standards.
Which basis of accounting best contributes to measuring the cost of services for rational budgeting purposes?
Accrual.
Modified cash.
Modified accrual.
Cash.
Which of the following might appropriately be termed an outcome indicator for a police department that reports service efforts and accomplishments (SEA) indicators?
Number of crimes investigated.
Value of property lost due to crime.
Hours of patrol.
Number of personnel hours expended.
Which of the following is not an element of a typical governmental total quality management (TQM) structure?
Customer orientation.
Support and commitment of top-level officials.
Strong central control over personnel classifications, budget allocations, and procurement.
Reduction of barriers to productivity and quality improvement.
