CAFM Business and Information Management 5 — Questions and Answers
Question 1: A fleet manager is developing a replacement cycling policy. Which factor should have the GREATEST weight in determining optimal replacement timing?
- Driver preference for newer vehicles
- Economic analysis of depreciation curve vs. rising maintenance costs (Correct answer)
- Vehicle color and branding consistency
- Availability of the same make and model
Correct answer: Economic analysis of depreciation curve vs. rising maintenance costs
The optimal replacement point occurs where the declining depreciation cost curve intersects with rising maintenance costs, making economic analysis the primary driver.
Question 2: Which internal control practice BEST prevents fraudulent fuel purchases on fleet fuel cards?
- Requiring drivers to save all receipts but not reviewing them
- Implementing exception reporting that flags purchases exceeding vehicle tank capacity (Correct answer)
- Issuing unlimited daily fuel spend limits
- Allowing fuel purchases at any retail location worldwide
Correct answer: Implementing exception reporting that flags purchases exceeding vehicle tank capacity
Automated exception reports that flag purchases exceeding vehicle tank capacity quickly identify potential fraud such as fuel card sharing or non-vehicle purchases.
Question 3: Under MACRS (Modified Accelerated Cost Recovery System), most light-duty fleet vehicles fall into which depreciation class?
- 3-year property
- 5-year property (Correct answer)
- 7-year property
- 10-year property
Correct answer: 5-year property
Under MACRS, most automobiles and light-duty trucks used in business are classified as 5-year property for tax depreciation purposes.
Question 4: A fleet manager wants to measure the accuracy of preventive maintenance scheduling. Which metric DIRECTLY measures this?
- Average vehicle age
- PM compliance rate (% of PMs completed on schedule) (Correct answer)
- Total maintenance spend per year
- Number of fleet technicians employed
Correct answer: PM compliance rate (% of PMs completed on schedule)
PM compliance rate measures the percentage of scheduled preventive maintenance events completed on time, directly reflecting scheduling accuracy and discipline.
Question 5: Which practice ensures fleet data integrity when migrating records from a legacy FMS to a new platform?
- Migrating all data at once with no validation
- Performing data cleansing, mapping, and parallel-run validation before cutover (Correct answer)
- Deleting historical records to start fresh
- Manually re-entering all records after go-live
Correct answer: Performing data cleansing, mapping, and parallel-run validation before cutover
Data cleansing, field mapping, and parallel-run validation catch errors before cutover, ensuring the new system contains accurate and complete historical records.
Question 6: A fleet manager is asked to quantify the value of a telematics system investment. Which methodology BEST demonstrates ROI to leadership?
- Listing all telematics system features
- Calculating cost savings from fuel reduction, accident reduction, and maintenance avoidance against implementation costs (Correct answer)
- Comparing the system to competitors' products
- Estimating the number of vehicles that could be tracked
Correct answer: Calculating cost savings from fuel reduction, accident reduction, and maintenance avoidance against implementation costs
ROI analysis quantifies tangible savings (fuel, accidents, maintenance) against total implementation and subscription costs, providing a clear financial return calculation.
Question 7: Which report type is MOST useful for a fleet manager who needs to identify seasonal patterns in vehicle repair costs over a three-year period?
- Single-month maintenance cost snapshot
- Multi-year trend analysis report segmented by month or quarter (Correct answer)
- One-time vendor audit report
- Annual insurance claims summary
Correct answer: Multi-year trend analysis report segmented by month or quarter
A multi-year trend analysis segmented by time period reveals seasonal cost patterns that single-period reports cannot show.
CAFM Business and Information Management 5
A fleet manager is developing a replacement cycling policy.
Which factor should have the GREATEST weight in determining optimal replacement timing?