Budgetary Concerns

Question 1

spending-ceiling model

Answer 1

requires justification only for those expenses that exceed those of the previous budget cycle – often results in falling behind due to prices of supplies rising faster

Question 2

zero-based budgeting

Answer 2

requires justification for every budget line item without reference to previous spending patterns; requires documentation of actual program needs and development of priorities (rank each item)

Question 3

fixed budgeting

Answer 3

expenditures and revenues are projected on a monthly basis, thereby providing an estimate of cash flow; most appropriate for large, well-established sports medicine clinics during economic uncertainty

Question 4

variable budgeting

Answer 4

requires adjustment of monthly expenditures so that they do not exceed revenues; rarely used by school-based programs (very difficult to estimate costs in advance)

Question 5

lump sum

Answer 5

allocates a fixed amount of money for an entire program without specifying how the money will be spent; gives freedom to spend where it is needed most

Question 6

spending-reduction model

Answer 6

financial crisis model; requires the reallocation of institutional funds, resulting in reduced spending levels for some programs (should identify areas that could be cut w/o serious impact)

Question 7

line item budgeting

Answer 7

allocates a fixed amount of money for each subfunction of a program; expendable supplies, equipment repair, team physician services, and insurance

Question 8

performance budgeting

Answer 8

allocates funds for discrete activities; not commonly used due to expense and difficulty of analyzing specific activity costs

Question 9

expendable supplies

Answer 9

cannot be reused (tape, bandages, hydrogen peroxide)

Question 10

nonexpendable supplies

Answer 10

can be reused (compression wraps, scissors, neoprene sleeves)

Question 11

non-consumable capital

Answer 11

usually not removed from the athletic training facility (ice machine, tx table, modality unit)

Question 12

consumable capital

Answer 12

crutches, coolers, and kits

Question 13

request for quotation

Answer 13

document that provides vendors with the specifications for bidding on the sale of services

Question 14

negotiations

Answer 14

the process of bargaining (capital equipment, medium-priced annual rebuys, lower-cost, consumable)

Question 15

requisition

Answer 15

formal or informal communication used for requesting authorization to purchase goods/ services

Question 16

purchase order

Answer 16

a document that formalizes the terms of purchase and transmits the intentions of the buyer to purchase goods or services from a vendor

Question 17

receiving

Answer 17

process of accepting delivery of goods; should be immediately checked to make sure the packing slip matches contents and to determine whether all goods specified in order were received; inspect for damage

Question 18

educational, professional, or industrial settings accounts payable

Answer 18

educational, professional, or industrial settings: submit invoice to business office ASAP to take advantage of early payment discounts

Question 19

independent clinics

Answer 19

evaluate terms of early payment discount