Business Management Flashcards
7 cards from real CAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business Management flashcards as text
A flight department manager preparing an annual budget wants to account for engine overhauls that occur every 3,000 flight hours. Which budgeting approach best handles this expense?
Answer: Accrue a reserve per flight hour so funds accumulate toward the overhaul
Hourly maintenance reserves spread large, usage-driven costs evenly across operating periods, matching expense to utilization.
In a SWOT analysis for a corporate flight department, a competitor charter operator lowering its rates would be classified as which element?
Answer: Threat
External factors that could harm the organization, such as competitive pricing pressure, are threats in SWOT analysis.
Which financial statement would an aviation manager review to determine whether the flight department generated enough cash to cover a hangar lease payment this quarter?
Answer: Cash flow statement
The cash flow statement shows actual cash inflows and outflows, which determines the ability to meet payment obligations.
A flight department's fixed costs are $1.2 million per year and variable costs are $2,000 per flight hour. If the internal chargeback rate is $5,000 per hour, how many hours must be flown to break even?
Answer: 400 hours
Break-even equals fixed costs divided by contribution margin: $1,200,000 divided by ($5,000 minus $2,000) equals 400 hours.
When benchmarking a flight department against peer operations, which metric best measures aircraft utilization efficiency?
Answer: Flight hours flown per aircraft per year
Annual flight hours per aircraft directly measures how intensively each asset is being used relative to peers.
A CEO asks the aviation manager to justify keeping the flight department rather than outsourcing to charter. The strongest business justification framework is:
Answer: A cost-benefit analysis including travel time savings, availability, security, and total cost of ownership
A comprehensive cost-benefit analysis quantifies both financial and strategic value, which is how in-house operations are justified against outsourcing.
Under a zero-based budgeting approach, how does a flight department manager build next year's budget?
Answer: Justify every expense from scratch regardless of prior-year spending
Zero-based budgeting requires every line item to be justified anew each cycle rather than basing amounts on historical spending.