CGM CGM Budget & Financial Management 2

Question 1

What is the term for the annual loss in value of grounds equipment recorded for accounting purposes?

Accepted Answer

Depreciation

Answer

Depreciation records the systematic reduction in an asset's book value over its useful life, reflecting wear and obsolescence.

Question 2

A grounds department wants to justify hiring an additional full-time employee. Which analysis best supports this request?

Accepted Answer

A workload analysis comparing labor hours needed versus available

Answer

A workload analysis quantifies the hours of labor required versus the hours currently available, providing data-driven justification for additional staffing.

Question 3

Which cost is typically classified as a fixed cost in a grounds operations budget?

Accepted Answer

Building lease for the maintenance facility

Answer

A building lease is a fixed cost because it remains constant regardless of operational output, unlike variable costs that change with activity level.

Question 4

What is the purpose of a Request for Proposal (RFP) in grounds management contracting?

Accepted Answer

To solicit competitive bids from qualified vendors for a defined scope of work

Answer

An RFP formally invites qualified contractors to submit detailed proposals for a specified scope of work, enabling competitive comparison.

Question 5

In grounds management, what does the term 'total cost of ownership' (TCO) include?

Accepted Answer

Purchase price, operating costs, maintenance, and disposal costs over the asset's life

Answer

TCO encompasses all costs associated with an asset from acquisition through disposal, providing a comprehensive view of true financial impact.

(CGM) Certified Grounds Manager Practice Test

(CGM) Certified Grounds Manager Practice Test

CGM CGM Budget & Financial Management 2