Financial Management & Budgeting Flashcards

A strength and conditioning department receives a $50,000 annual budget. If 60% is allocated to equipment and 25% to staff training, how much remains for facility maintenance?

Answer: $7,500

60% ($30,000) + 25% ($12,500) = $42,500 spent, leaving $7,500 (15%) for facility maintenance.

Which budget type is MOST appropriate for a new strength and conditioning facility with no prior spending history?

Answer: Zero-based budget

Zero-based budgeting requires justifying all expenses from scratch, making it ideal when no historical data exists.

A CSCS professional must justify purchasing $15,000 in new equipment. Which financial document BEST demonstrates the long-term value of this investment?

Answer: Return on investment analysis

An ROI analysis compares the expected benefits (injury reduction, performance gains) against the equipment cost over time.

Which of the following is an example of a variable cost in a strength and conditioning program?

Answer: Consumable supplies (tape, bands)

Consumable supplies fluctuate based on usage and athlete volume, making them variable costs unlike fixed expenses.

A university athletic department requires that all equipment purchases over $5,000 receive three competitive bids. This policy PRIMARILY serves to:

Answer: Ensure fiscal responsibility and competitive pricing

Requiring multiple bids ensures the institution receives competitive pricing and demonstrates responsible stewardship of funds.

When preparing an annual budget proposal, a strength coach should FIRST:

Answer: Review prior year expenditures and outcomes

Reviewing prior year expenditures establishes a baseline and identifies trends, overspending areas, and unmet needs.

Equipment leasing rather than purchasing is MOST advantageous when:

Answer: Technology changes rapidly and upgrades are frequent

Leasing is preferred when equipment becomes obsolete quickly, allowing upgrades without the burden of owned depreciating assets.