CSCS Financial Management & Budgeting 3 — Questions and Answers
Question 1: A strength coach notices mid-year spending is 70% of the annual budget after only 6 months. The BEST immediate action is to:
- Request a budget increase from administration
- Defer non-essential purchases and revise spending projections (Correct answer)
- Continue spending at the current rate
- Transfer funds from a different department
Correct answer: Defer non-essential purchases and revise spending projections
Deferring non-essential purchases and revising projections helps bring spending back in line before a deficit occurs.
Question 2: Which financial metric BEST measures the efficiency of a strength and conditioning program relative to its cost?
- Gross revenue per athlete
- Cost per athlete served (Correct answer)
- Total program expenditure
- Equipment depreciation rate
Correct answer: Cost per athlete served
Cost per athlete served divides total program costs by the number of athletes, enabling meaningful efficiency comparisons.
Question 3: Straight-line depreciation of a $20,000 piece of equipment with a 10-year useful life yields an annual depreciation expense of:
- $1,000
- $2,000 (Correct answer)
- $4,000
- $5,000
Correct answer: $2,000
Straight-line depreciation divides cost by useful life: $20,000 ÷ 10 years = $2,000 per year.
Question 4: A strength and conditioning program's fixed costs include all of the following EXCEPT:
- Facility rent
- Full-time staff salaries
- Athletic tape and bandaging supplies (Correct answer)
- Insurance premiums
Correct answer: Athletic tape and bandaging supplies
Athletic tape and bandaging supplies are consumables that vary with usage, making them variable rather than fixed costs.
Question 5: When submitting a capital expenditure request for a new power rack system, the MOST persuasive supporting data would include:
- Manufacturer's marketing brochures
- Athlete injury rates and projected performance improvements (Correct answer)
- Competing program equipment lists
- Coach's personal preference documentation
Correct answer: Athlete injury rates and projected performance improvements
Quantifiable data linking equipment to reduced injuries and improved performance provides the strongest justification for capital expenditure approval.
Question 6: A grant requires that equipment purchased with grant funds be used exclusively for the grant purpose for five years. This restriction is BEST described as a:
- Capital constraint
- Restricted fund requirement (Correct answer)
- Variable cost limitation
- Depreciation rule
Correct answer: Restricted fund requirement
Restricted fund requirements specify how and when money may be spent, and are common conditions of grant funding agreements.
Question 7: Which approach is MOST effective for reducing equipment costs while maintaining program quality?
- Purchasing only new top-of-the-line equipment
- Establishing a preventive maintenance schedule to extend equipment life (Correct answer)
- Replacing all equipment on a fixed annual cycle
- Outsourcing all strength training to commercial gyms
Correct answer: Establishing a preventive maintenance schedule to extend equipment life
Preventive maintenance extends equipment lifespan and reduces costly emergency repairs or early replacements.
CSCS Financial Management & Budgeting 3
A strength coach notices mid-year spending is 70% of the annual budget after only 6 months.
The BEST immediate action is to: