Daily newspapers are in the hour of the wolf. The church-state separation between editorial and business has thinned considerably as circulation has declined. Online competition has forced editors to tighten their belts and step up their game. Many editors, however, are drawing a proverbial line in the sand and dramatically resigning.

Are they being realistic, considering the sea change going on in publishing?

Some editors view budgetary restraint as an affront to their journalistic principles. Deposed Los Angeles Times editor James O'Shea, who is leaving over budget cuts, is just such a man. O'Shea told The Wall Street Journal this week, "...the financial people [want] you in a straitjacket ... they really don't have any faith in journalists to make these decisions. They treat you like budgetary adolescents that can't be trusted.''

Are you a budgetary adolescent? Answer these budgetary questions that editors often deal with (answers after the jump, no cheating):

What Does ROI Stand For?
What Does CPM Stand For?
What Is A Variance?
What Is P&L?
What Is A Line Item?
What Does CPP Stand For?
What Is A Run Rate/Merit Pool?

(image via clipart)

Answers:

ROI is a Return on Investment

CPM Stands For Cost Per Thousand

Variance is a number that reports how over/under you are for things like budget or page count vs another measurement usually a budget or last fiscal year.

P&L is Profits and Losses

A Line Item is an appropriation (e.g., car service, rent, etc.)or a particular service or fee for a photo shoot or story (e.g., props, hair stylist, etc.) that is itemized on a separate line in a budget.

CPP is Cost per page.

A Run Rate/Merit Pool is the amount of money editor has to distribute to staff as a raise in salary.