CGM Budget & Financial Management Flashcards

Which budgeting method requires grounds managers to justify every expense from zero each fiscal year?

Answer: Zero-based budgeting

Zero-based budgeting requires justifying all expenses from scratch each budget cycle rather than basing them on prior year spending.

What is the primary purpose of a life-cycle cost analysis when purchasing grounds equipment?

Answer: To assess the total cost of ownership over the equipment's useful life

Life-cycle cost analysis evaluates purchase price, maintenance, fuel, and disposal costs over the full ownership period to determine true cost.

A grounds manager receives a bid that is 40% below all other bids. What should be the first course of action?

Answer: Investigate the bid for errors, omissions, or unrealistic assumptions

An abnormally low bid should be reviewed for mistakes or missing scope items that could lead to disputes or cost overruns.

Which document outlines the detailed scope of work and performance standards for a contracted grounds service?

Answer: Specification sheet

A specification sheet defines exactly what work must be performed, how it must be performed, and the standards the contractor must meet.

What does a budget variance report primarily communicate to grounds management leadership?

Answer: The difference between budgeted and actual expenditures

A budget variance report compares planned spending to actual spending, highlighting over- or under-budget line items for management review.

When preparing a capital improvement budget request for new irrigation infrastructure, which factor is least relevant?

Answer: The grounds manager's years of service

Capital budget requests should be based on financial and operational factors such as costs, savings, and asset longevity, not staff tenure.