Practice Test GeeksCAFM - Certified Automotive Fleet Manager Practice Test
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Asset Management Flashcards

7 cards from real CAFM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Asset Management flashcards as text

  1. What is 'remarketing' in the context of fleet asset management?

    Answer: The process of selling or disposing of fleet vehicles at end of service

    Remarketing encompasses all activities involved in selling or auctioning used fleet vehicles to maximize return at disposition.

  2. A fleet manager analyzing asset utilization discovers that 20% of vehicles are driven fewer than 5,000 miles per year. The FIRST recommended action is:

    Answer: Investigate the business need and consider right-sizing the fleet

    Before disposing of assets, a fleet manager should validate whether the low utilization reflects a legitimate operational need or true excess inventory.

  3. Which type of vehicle acquisition gives the fleet the most flexibility to return assets without a long-term financial obligation?

    Answer: Closed-end lease

    A closed-end (operating) lease limits the fleet's financial exposure at lease end, as the lessor bears the residual value risk.

  4. Net book value (NBV) is calculated as:

    Answer: Purchase price minus accumulated depreciation

    NBV equals original cost minus all depreciation recorded to date, representing the asset's carrying value on the balance sheet.

  5. A fleet manager is evaluating whether to repair a vehicle with 180,000 miles or replace it. Which analysis tool is MOST relevant?

    Answer: Break-even analysis comparing repair cost vs. replacement TCO

    Break-even analysis compares the cost to repair and continue operating versus acquiring a replacement, revealing the economically superior option.

  6. Which fleet management practice involves setting minimum and maximum vehicle inventory levels to optimize asset count?

    Answer: Right-sizing

    Right-sizing aligns the number and type of vehicles to actual operational requirements, eliminating excess assets and filling genuine gaps.

  7. When a fleet vehicle is 'written off' after a total loss, which value is used to settle the insurance claim?

    Answer: Actual cash value (ACV) at the time of loss

    Insurance settlements for total losses are based on ACV — the fair market value of the vehicle immediately before the loss event.

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