Budgeting Methods Quiz

Which method is considered most futuristic and analytical, focusing on comparing alternative program outcomes?

• Line item budgeting

• Formula budgeting

• Planning Programming Budgeting System (PPBS)

• Zero-based budgeting

Zero-based budgeting requires justification of:

• Only new programmes

• Last year’s programmes

• All budget components from scratch

• Only capital expenditures

A key feature of performance budgeting is:

• Cost-free implementation

• Focus on past expenditures

• Operational efficiency and service performance

• Simplified accounting methods

One criticism of performance budgeting is that:

• It oversimplifies library functions

• It measures quantity, not quality

• It ignores staff roles

• It is unsuitable for public libraries

Which budgeting system was introduced by the US Department of Defense in 1961?

• Programme budgeting

• PPBS

• Line item budgeting

• ZBB

In ZBB, what does the “cut-off point” correspond to?

• Staff salary limit

• Final expenditure list

• Budget allocation limit

• Maximum procurement level

A limitation of ZBB is:

• Lack of accountability

• Limited flexibility

• High time and effort requirement

• Absence of measurable units

Which method combines both programme budgeting and systems analysis?

• Line item budgeting

• Performance budgeting

• PPBS

• Formula budgeting

In practice, most Indian libraries follow which budgeting method?

• ZBB

• PPBS

• Line item (Historical) budgeting

• Performance budgeting

According to Ranganathan, what proportion of library budget should ideally be spent on staff?

• 40%

• 50%

• 30%

• 20%