Fire and Life Safety Educator II-Chapter 12 vocab

A set of vocabulary flashcards defining key budgetary, financial, and policy terms found in the lecture notes.

Capital expenditure

A purchase of durable items that cost more than a predetermined budgeting amount and will last for more than one budget year.

Consumables

Materials that have a one-time use and must be replaced after distribution.

Cost-benefit analysis

An analytical tool for assessing the pros and cons of moving forward with a business proposal.

Expenditures

The money spent for goods and services.

Fiscal year

A 12-month period during which an organization plans to use its funds.

Line item budget

A format in which expenditures are identified in a categorized line-by-line format.

Public policy

What government does or does not do about a problem that comes before them for consideration and possible action.

Request for proposal (RFP)

A formal process to solicit goods or services through a procedure determined by the governing financial body, usually for large or complex purchases or services.

Revenues

The income of an organization from all sources.

Sole-source provider

The only source for an item.

Specification (spec)

A process used to identify the necessary criteria for a purchase which covers every requirement that must be met for an interested vendor to be considered.

Tax-exempt

A federal designation granted by the Internal Revenue Service which allows the organization to make purchases without paying taxes on the item.