CSCS Financial Management & Budgeting 2 — Questions and Answers
Question 1: 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?
- $5,000
- $7,500 (Correct answer)
- $10,000
- $12,500
Correct answer: $7,500
60% ($30,000) + 25% ($12,500) = $42,500 spent, leaving $7,500 (15%) for facility maintenance.
Question 2: Which budget type is MOST appropriate for a new strength and conditioning facility with no prior spending history?
- Incremental budget
- Zero-based budget (Correct answer)
- Rolling budget
- Activity-based budget
Correct answer: Zero-based budget
Zero-based budgeting requires justifying all expenses from scratch, making it ideal when no historical data exists.
Question 3: A CSCS professional must justify purchasing $15,000 in new equipment. Which financial document BEST demonstrates the long-term value of this investment?
- Cash flow statement
- Depreciation schedule
- Return on investment analysis (Correct answer)
- Accounts payable ledger
Correct answer: Return on investment analysis
An ROI analysis compares the expected benefits (injury reduction, performance gains) against the equipment cost over time.
Question 4: Which of the following is an example of a variable cost in a strength and conditioning program?
- Monthly facility lease payment
- Head strength coach salary
- Consumable supplies (tape, bands) (Correct answer)
- Annual software subscription
Correct answer: Consumable supplies (tape, bands)
Consumable supplies fluctuate based on usage and athlete volume, making them variable costs unlike fixed expenses.
Question 5: A university athletic department requires that all equipment purchases over $5,000 receive three competitive bids. This policy PRIMARILY serves to:
- Reduce vendor relationships
- Ensure fiscal responsibility and competitive pricing (Correct answer)
- Limit the coach's purchasing authority
- Comply with NSCA guidelines
Correct answer: Ensure fiscal responsibility and competitive pricing
Requiring multiple bids ensures the institution receives competitive pricing and demonstrates responsible stewardship of funds.
Question 6: When preparing an annual budget proposal, a strength coach should FIRST:
- Order new equipment catalogs
- Review prior year expenditures and outcomes (Correct answer)
- Survey athletes about equipment preferences
- Contact vendors for preliminary quotes
Correct answer: Review prior year expenditures and outcomes
Reviewing prior year expenditures establishes a baseline and identifies trends, overspending areas, and unmet needs.
Question 7: Equipment leasing rather than purchasing is MOST advantageous when:
- The department has excess capital reserves
- Technology changes rapidly and upgrades are frequent (Correct answer)
- Tax depreciation benefits are maximized
- Long-term ownership is the institutional goal
Correct 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.
CSCS Financial Management & Budgeting 2
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?