ACE Airport Financial Management 3

Question 1

Which cost center classification at an airport groups expenses directly associated with a specific, identifiable airport function or area?

Accepted Answer

Direct cost center

Answer

Direct cost centers track expenses that can be attributed specifically to a function, such as a runway or terminal building.

Question 2

When an airport issues general airport revenue bonds (GARBs), the primary security pledged to bondholders is:

Accepted Answer

Net airport revenues

Answer

GARBs are secured by the net revenues of the airport system, not by general government taxing power.

Question 3

Passenger facility charges (PFCs) collected by airlines on behalf of airports are primarily restricted to use on:

Accepted Answer

Eligible airport capital projects that preserve or enhance safety and capacity

Answer

FAA regulations restrict PFC use to FAA-approved capital projects that improve safety, security, capacity, or noise reduction.

Question 4

An airport's cost per enplaned passenger (CPE) is used primarily to:

Accepted Answer

Benchmark airline cost competitiveness compared to other airports

Answer

CPE is a standard benchmark airlines and analysts use to compare the cost of operating at one airport versus alternatives.

Question 5

Under a 'compensatory' airport use agreement, airline rates and charges are set to:

Accepted Answer

Recover only the actual costs of facilities used by each airline

Answer

Compensatory agreements charge airlines the actual cost of the specific facilities and services they use.

(ACE) Airport Certified Employee Practice Test