CGM CGM Budget & Financial Management

Question 1

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

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Rolling budget

Answer

Capital budgeting

Question 2

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

Accepted Answer

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

Answer

To compare equipment brand reputation

Answer

To determine resale value only

Answer

To evaluate color and aesthetics

Question 3

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

Accepted Answer

Investigate the bid for errors, omissions, or unrealistic assumptions

Answer

Accept it immediately to save money

Answer

Reject it without review

Answer

Request that other vendors lower their bids to match

Question 4

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

Accepted Answer

Specification sheet

Answer

Purchase order

Answer

Budget variance report

Answer

Depreciation schedule

Question 5

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

Accepted Answer

The difference between budgeted and actual expenditures

Answer

The number of staff hours worked

Answer

Equipment maintenance schedules

Answer

Pesticide application records

Question 6

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

Accepted Answer

The grounds manager's years of service

Answer

Installation cost estimate

Answer

Projected water savings

Answer

Expected equipment lifespan