CRP Relocation Cost Management and Budgeting 2

Question 1

A relocation coordinator notices that household goods shipment costs are consistently 20% over budget. What is the BEST first step?

Accepted Answer

Audit actual weights and services versus original estimates to identify variance drivers

Answer

Immediately switch all moves to lump sum

Answer

Reduce the household goods benefit cap for all employees

Answer

Eliminate the use of third-party moving companies

Question 2

What is a 'managed cap' or 'flexible cap' policy structure in relocation?

Accepted Answer

A tiered benefit structure where the cap adjusts based on family size, distance, or employee level

Answer

A policy where all benefits are fixed with no employee flexibility

Answer

A policy that caps only international moves

Answer

A benefit that requires board approval for each move

Question 3

Which relocation cost component is typically the LARGEST single expense for a homeowner relocation?

Accepted Answer

Home sale assistance (BVO or GBO programs)

Answer

Temporary housing

Answer

Household goods transportation

Answer

Travel and lodging for house-hunting trips

Question 4

In relocation budgeting, what does ROI (return on investment) analysis most commonly measure?

Accepted Answer

The cost of the relocation compared to the value the employee brings to the new role or avoided hiring costs

Answer

The financial return on real estate purchased during a relocation

Answer

The interest earned on lump sum payments

Answer

The profit margin earned by the relocation management company

Question 5

What is the purpose of a relocation 'repayment agreement' (also called a clawback)?

Accepted Answer

To recover relocation costs from the employee if they leave the company within a defined period

Answer

To repay vendors if an employee cancels a shipment

Answer

To issue refunds if the move comes in under budget

Answer

To offset taxes owed on gross-up payments

Question 6

Which of the following is a key advantage of using a Relocation Management Company (RMC) for cost containment?

Accepted Answer

RMCs provide volume-negotiated vendor pricing and centralized invoice auditing

Answer

RMCs legally eliminate all tax gross-up obligations

Answer

RMCs guarantee moves will always come in under budget

Answer

RMCs replace the need for an internal relocation coordinator

Question 7

When a company implements a 'core-flex' relocation policy, what is the primary cost management benefit?

Accepted Answer

It provides standard benefits to all employees while letting higher-need movers self-fund optional extras, controlling baseline costs

Answer

It eliminates the need for tax gross-up on all benefits

Answer

It requires all employees to use lump sum regardless of tier

Answer

It shifts all costs to the receiving business unit