CAFM Asset Management 3

Question 1

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

Accepted Answer

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

Answer

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

Question 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:

Accepted Answer

Investigate the business need and consider right-sizing the fleet

Answer

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

Question 3

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

Accepted Answer

Closed-end lease

Answer

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

Question 4

Net book value (NBV) is calculated as:

Accepted Answer

Purchase price minus accumulated depreciation

Answer

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

Question 5

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

Accepted Answer

Break-even analysis comparing repair cost vs. replacement TCO

Answer

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

CAFM - Certified Automotive Fleet Manager Practice Test

CAFM - Certified Automotive Fleet Manager Practice Test

CAFM Asset Management 3