CAFM Asset Management 2

Question 1

Which depreciation method allocates an equal amount of cost each year over the asset's useful life?

Accepted Answer

Straight-line

Answer

Declining balance

Answer

Units of production

Answer

Sum-of-years-digits

Question 2

A fleet manager wants to compare the total cost of owning a vehicle versus leasing it. Which metric is most appropriate?

Accepted Answer

Total cost of ownership (TCO)

Answer

Residual value only

Answer

Monthly payment amount

Answer

Invoice price

Question 3

What is the term for the scheduled replacement of fleet vehicles based on predetermined criteria such as age or mileage?

Accepted Answer

Fleet cycling

Answer

Asset liquidation

Answer

Capital rationing

Answer

Remarketing

Question 4

An organization chooses not to capitalize a vehicle purchase and instead expenses it immediately. This decision is most influenced by:

Accepted Answer

The company's capitalization threshold policy

Answer

The vehicle's fuel economy rating

Answer

The driver's assignment location

Answer

The color and trim level chosen

Question 5

Which of the following best describes 'residual value' in fleet asset management?

Accepted Answer

The estimated market value of a vehicle at the end of a lease or ownership period

Answer

The purchase price minus dealer discounts

Answer

The cost of all scheduled maintenance performed

Answer

The annual registration fee paid by the fleet

Question 6

A fleet manager reviews vehicles with high maintenance costs but low mileage. The BEST course of action is to:

Accepted Answer

Evaluate early replacement or remarketing

Answer

Increase mileage limits for those vehicles

Answer

Change the assigned driver

Answer

Switch to a different fuel type

Question 7

Which document formally records the assignment of a fleet vehicle to a specific driver or department?

Accepted Answer

Vehicle assignment agreement

Answer

Bill of lading

Answer

Certificate of origin

Answer

Title application