Financial Management MCQ Quiz in मल्याळम - Objective Question with Answer for Financial Management - സൗജന്യ PDF ഡൗൺലോഡ് ചെയ്യുക

The correct answer is "All I, II, and III".Key Points

• The UGC Library Committee (1957) has suggested that a university library with 5,000 students and 500 teachers and research fellows should have a budgetary provision of Rs. 3,50,000 out of which Rs. 1,75,000 would be spent on Books, journals, and other kinds of reading materials and a similar amount on staff, implying thereby that the expenditure on books and staff may be equal.

​Additional Information 

• UGC Library Committee (1957)-
  • Ranganathan Committee is also known as Ranganathan Committee or UGC Library Committee (1957).
  • It was set up in 1957 under the chairmanship of Dr. S. R. Ranganathan.
  • The committee was the first of its kind formed to systematically survey academic libraries on a national basis.
  • It was the first time that the Government of India formed the UGC Library Committee to seek advice from professional librarians.
  • The committee recommended that funds be given to the academic library at the rate of Rs. 15 per enrolled student and Rs. 200 per teacher and research fellow.

The correct answer is "Robert McNamara".

Key Points

• Peter F. Drucker-​
  • Peter Drucker. was one of the most widely known and influential thinkers on Management.
  • He was often described as the inventor or founder of modern management.
  • He has coined the term "knowledge worker".
  • He has also coined the term "Management by Objective" (MOB).
• Robert McNamara-
  • He was an American business executive and the eighth United States Secretary of Defense.​
• PPBS-
  • It stands for Planning Program Budgeting System (PBBS).
  • This method of budgeting was first proposed by the "United States Department of Defence (USDOD)".
  • Robert McNamara introduced the PPBS for the first time in the US Department of Defense in 1960.
  • The Planning Programming Budgeting System (PPBS) method combines the best of both "Program Budgeting" and "Performance Budgeting".
  • The two key elements of PBBS are "Budgeting" and "System Analysis".

The correct answer is Robert McNamara (USDOD).

Key Points PPBS (Planning Programming Budgeting System)

• This method of budgeting was first proposed by Robert McNamara of USDOD (United States Department of Defence) (1961).
• Two key elements of PPBS are budgeting and systems analysis.
• PPBS involves systems analysis, OR (Operation Research).
• This method combines the best of both program budgeting and performance budgeting. 
• The focus of this method is on planning.
• It begins with the establishment of goals and objectives and ends with the formulation of programs or services.

Additional Information

•  Zero Based Budgeting
  • ​The preparation of the Library Budget without considering the previous year's budget is known as Zero Based Budgeting.
  • It was developed by Peter Phyrr in the 1970s.
  • It is also known as Start from Scratch Budget.
• Performance Budget
  • It is based on the relationship between program funding levels and expected results.
  • It reflects both the input of resources and the output of services.
  • It reflects the estimated expenses and revenues of the libraries.
• Program Budget​​
  • It is the Budgetary presentation designed to display its program activities.
  • It gives the detailed costs of every activity or Program that is to be carried out with a given budget.
  • It was developed by US President Lyndon Johnson.
• Formula Budget
  • ​Use of Mathematical Formulas to determine the capital required to produce a given output.
  • It was developed by Eric A. Hanushek.

The correct answer is 50%

Key Points

•  Ranganathan has suggested the following norm for expenditure for a university library:
  • Staff 50 %
  • Books and other reading materials 40 %
  • Miscellaneous 10 %
• The University Grants Commission Library Committee has also suggested similar norms for university libraries. 
  • Salaries and Allowances 50 %
    Books 20 %
    Periodicals 13 %
    Binding 7 %
    Others (including maintenance, Stationery, and contingencies) 10 %

Additional Information

• In the case of public libraries, the norms are as below:
  Salaries and Allowances 50 %
  Books 20 %
  Periodicals 5 %
  Binding 5 %
  Others (including maintenance, Stationery, and contingencies) 20 %
• For the special libraries, the following norms can be applied:
  Salaries and Allowances 30 %
  Books 20 %
  Periodicals 30 %
  Binding 10 %
  Others (including maintenance, Stationery, and contingencies) 10 %

The correct answer is 40%.

Key Points

• The University Grants Commission has suggested that 40% of the total university library budget should be spent on books, other reading material, etc, and 50% on the library staff.
• In this regard, Dr. Ranganathan has suggested that the total budget should be distributed as follows:
  • Staff - 50%
  • Books, reading material - 40%
  • Others - 10%

Additional Information 

SR Ranganathan

• ​He is regarded as the Father of Library Science in India.
• His most notable contribution to the field of library science is his "Five Laws of Library Science".
• He is also recognized for his development of a classification scheme widely known as Colon Classification.

The correct answer is Zero Based on Budgeting.

Key Points

•  Zero Based Budgeting
  • ​The preparation of the Library Budget without considering the previous year's budget is known as Zero Based Budgeting.
  • It was developed by Peter Phyrr in the 1970s.
  • It is also known as Start from Scratch Budget.
• Performance Budget
  • It is based on the relationship between program funding levels and expected results.
  • It reflects both the input of resources and the output of services.
  • It reflects the estimated expenses and revenues of the libraries.
• Program Budget​​
  • It is the Budgetary presentation designed to display its program activities.
  • It gives the detailed costs of every activity or Program that is to be carried out with a given budget.
  • It was developed by US President Lyndon Johnson.
• Formula Budget
  • ​Use of Mathematical Formulas to determine the capital required to produce a given output.
  • It was developed by Eric A. Hanushek.

The correct answer is "1970".

Key Points

• ZBB-​
  • It stands for "Zero Based Budgeting".
  • This method of budgeting was developed by Peter Phyrr during the early 1970s.
  • It is an operating, planning, and budgeting process which requires the entire budget request in detail from scratch.
  • It has much in common with PBBS and is opposite to Historical Budgeting.
  • It is an operating, planning, and budgeting process which requires each manager to justify her/his entire budget request in detail from scratch (hence zero-base).
  • It does not take into account what happened in the past but places emphasis on current activities.

The correct answer is "II & III".

Key Points 

• UNESCO Public Library Manifesto-
  • It is the most important and basic document in the field of public librarianship first published in 1949.
  • It suggests the scope and characteristics of a public library.
  • The revised edition of "The UNESCO Public Library Manifesto" was produced in 1994 by UNESCO with the cooperation of the International Federation of Library Associations and Institutions (IFLA).
  • It prescribed that the "local or national government should wholly fund public libraries".
• ​Prof D.P. Chattopadhayaya Committee-​
  • The National Policy on Library and Information Systems (draft) was appointed by the Department of Culture, Ministry of Human Resource Development in October 1985.
  • Professor D.P. Chattopadhyaya was appointed as the chairman of this committee.
  • It recommended for "6-10% of the education budget for libraries and central government to provide funds under plan expenditure".

​

Additional Information

•  K.P. Sinha Committee-
  • It is also known as Advisory Committee for Libraries.
  • It was set up in 1957 by the Government of India under the chairmanship of K.P. Sinha.
  • The Advisory Committee examined the public libraries comprehensively and submitted its report in 1959.
  • It recommended the "Creation of Block Library Fund and Municipal Library Fund through cess, and both Central and State governments should contribute equal amount with provision to gradually increase state contribution to three times the cess amount".
  • It also recommended to UGC provide full assistance to universities in establishing full-fledged libraries and Information Science teaching departments.

The correct answer is "i-b, ii-c, iii- a".

Key Points

• Zero- Based Budgeting-
  • This method of budgeting was developed by Peter Phyrr during the early 1970s.
  • It is an operating, planning, and budgeting process which requires the entire budget request in detail from scratch.
  • It has much in common with PBBS and is opposite to Historical Budgeting.
• PPBS-
  • It stands for Planning Program Budgeting System (PBBS).
  • This method of budgeting was first proposed by the "United States Department of Defence (USDOD)".
  • The Planning Programming Budgeting System (PPBS) method combines the best of both "Program Budgeting" and "Performance Budgeting".
  • The two key elements of PBBS are "Budgeting" and "System Analysis".
• Program Budgeting-
  • This method of budgeting ​"tries to answer the questions 'what purpose the money is being spent" and 'how resources have to be deployed for each program?"
  • This method of budgeting was propounded by Hoover in Hoover Commission Report (1949).

The Correct answer is performance evaluation based on benefits about the input

Key Points 

Cost-Benefit Analysis (CBA)

A cost-benefit analysis is a process of comparing the projected or estimated costs and benefits (or opportunities) associated with a project decision to determine whether it makes sense from a business perspective

• It is a technique that is used to appraise and evaluate projects.
• The basic idea in CBA is quite simple:
  • first, identify the costs and benefits of a project and
  • then measure them incomparable units (say in terms of money, and expressed in a single currency).
  • Compare the benefits and the costs.
  • If the benefits exceed the costs, the project should be accepted as resource allocation will be efficient.
  • If, on the other hand, costs exceed benefits, then reject the project. 

Hence the correct option is performance evaluation based on benefit in relation to the input.

Additional Information

• The desirability or feasibility of projects, whether in the private or public sector are adjudged on the basis of criteria that are rooted in the concept of profits.
• Profitability is contingent upon the likely costs that the project entails, and the likely returns that it generates.
• The two sectors, public and private, however, may differ (sometimes widely) on the explicit recognition of the prices at which the value of output and the cost of inputs are to be evaluated.
• While the analysis of projects in the private sector generally incorporates the direct and financial costs and benefits only, the analysis of public sector projects attempts to encompass the indirect and non-financial costs also.