Understanding Budgeting Terms Quiz 2

What is the first step in the budget cycle?

• Planning

• Initiation

• Execution

• Closure

Which phase of the budget cycle is considered the most important?

• Initiation

• Execution

• Planning

• Closure

What is the main activity during the execution phase of the budget cycle?

• Reviewing project completion

• Obtaining buy-in

• Putting your plan into action

• Researching needs

What could happen if you request more money than needed during the planning phase?

• You could be accused of padding

• You would have to ask for more money

• You would need to furlough employees

• Your project would be completed faster

What does the 'S' in SMART principles stand for?

• Simple

• Specific

• Strategic

• Sustainable

How can the 'M' in SMART principles be applied to the budget process?

• By making goals measurable

• By making goals manageable

• By making goals memorable

• By making goals meaningful

What does the 'A' in SMART principles represent?

• Achievable

• Attainable

• Adaptable

• Accountable

Why should a goal be relevant according to SMART principles?

• To ensure it is easy to achieve

• To align with the company's mission

• To make it time-bound

• To make it specific

What is the significance of the 'T' in SMART principles?

• It ensures the goal is tangible

• It ensures the goal is time-bound

• It ensures the goal is technical

• It ensures the goal is transparent

What is the final step in the budget cycle?

• Execution

• Planning

• Closure

• Initiation