Pricing
Revenue Sources
Budgeting Basics
Budget Preparation
Budget Formats
100
The difference between the reference price and objective price. How the consumer feels about the objective price (good deal, rip-off, unfair, bargain)
What is Subjective Price
100
Collected in the form of property taxes, and is used to fund a wide range of civic services (Recreation and Parks).
What is Local Option Tax
100
Identify “committed” funds first in both the revenue and expense side of the budget.
What is a Budgeting Axiom
100
1. Salaries (Fixed growth; Merit increases; Cost-of-living increases) 2. Benefits (Highest uncontrollable cost; Medical, dental, life insurance, vacation, sick leave)
What is Personnel Services – Considerations Impacting Budget
100
1. Divides work into smaller units for more efficient measurement 2. Focus on goals, objectives, outputs, outcomes 3. Allows organization to focus on smaller components in greater detail
What is a Program Budget
200
Costs incurred regardless of the status of the program.
What is Fixed Costs
200
Collected in the form of property taxes, and is used to fund a wide range of civic services (Recreation and Parks).
What is Impact Fees
200
Determine indirect costs - not directly accountable to a particular function or product
What is an Expenditure Step
200
1. Budget Preparation 2. Submission and Approval 3. Budget Execution 4. Audit, Review, Evaluation
What is the Four (4) Steps of a Budget Preparation Cycle
200
Also known as a line Item budget
What is an Object Classification Budget
300
Substituting one activity for another Measured (Hours and minutes; Lost wages; Spent Savings) Not easily measurable (Family Cohesiveness, Personal Health, Feeling of Leisure)
What is Opportunity Price
300
Imposed by the government at point of sale on retail goods and services. Collected by retailer - passed on to the state.
What is Sales Tax
300
Determine level of subsidization or profit desired
What is Determining Fees
300
A commitment within an organization to use funds for a specific purpose. Funds reserved for later payment to cover expenses associated with business expenses.
What is Encumbered Funds
300
1. Collect all budget data 2. Identify appropriate classification code for each expenditure 3. Place items in sub-categories 4. Organize the budget
What are the Line Item Steps (in the O.C. budget)
400
Amount the customer feels the service should or might cost - Based on experience
What is Reference Price
400
Includes land/buildings, anything affixed to the land - warehouses, factories, offices, and other buildings owned by the business. Cannot be removed, such as equipment.
What is Real Property Tax
400
Determine program fees and charges
What is Revenue Steps
400
A cap on business spending based on one or more formulas or limits set by a business.
What is a Fixed Ceiling Budget
400
Provides performance-cost data (How much does it cost to do something?)
What is a step in a Performance Budget
500
Being prepared for the unexpected
What is Desired Contingency
500
Multiple /vary by state ($$corporations, capital gains, etc.).
What is State Sources
500
Identify Units of Measurement for Personnel
What is Expenditure Steps
500
1. Fiscal year 2. Allocated monies 3. Encumbered monies 4. Expended monies
What is the Four Terms Associated with Budget Cycle
500
1. Day-to-day detailed budget 2. Provides ongoing accounting 3. Based on expected expenditures 4. Depicts use of expenditures
What is describing a Running Budget
M
e
n
u