CSCS Financial Management & Budgeting 5 — Questions and Answers
Question 1: A strength coach is evaluating two vendors: Vendor A charges $500/unit with free shipping, and Vendor B charges $450/unit with $75 shipping per order. For a single order of 10 units, which is less expensive?
- Vendor A at $5,000 total
- Vendor B at $4,575 total (Correct answer)
- Both are equal in total cost
- Vendor B at $4,500 total
Correct answer: Vendor B at $4,575 total
Vendor B total = (10 × $450) + $75 = $4,500 + $75 = $4,575, which is less than Vendor A's $5,000.
Question 2: The term 'fiscal year' in athletic department budgeting refers to:
- The calendar year from January to December
- A 12-month accounting period that may or may not align with the calendar year (Correct answer)
- The period covered by a single grant award
- The duration of an athlete's eligibility
Correct answer: A 12-month accounting period that may or may not align with the calendar year
A fiscal year is any 12-month financial period; universities often use July 1–June 30 rather than the calendar year.
Question 3: Which budget item would MOST likely be classified as a capital expenditure rather than an operating expense?
- Monthly electricity bill for the weight room
- Annual purchase of resistance bands
- Purchase of a $25,000 force plate system (Correct answer)
- Coach's professional development conference fee
Correct answer: Purchase of a $25,000 force plate system
Capital expenditures involve large purchases of long-term assets (typically over $5,000), such as force plates used for multiple years.
Question 4: Which practice BEST demonstrates ethical financial management for a CSCS professional managing a department budget?
- Using department funds to purchase personal fitness equipment
- Maintaining detailed records of all expenditures with supporting receipts (Correct answer)
- Approving purchases from a vendor owned by a family member without disclosure
- Reallocating restricted grant funds to cover general operating costs
Correct answer: Maintaining detailed records of all expenditures with supporting receipts
Maintaining detailed records with receipts ensures transparency, accountability, and compliance with institutional and regulatory requirements.
Question 5: A strength and conditioning program is considering outsourcing sports nutrition consulting to reduce costs. This decision is BEST evaluated using a:
- Depreciation schedule
- Make-or-buy analysis (Correct answer)
- Cash flow projection only
- Equipment inventory audit
Correct answer: Make-or-buy analysis
A make-or-buy analysis compares the total cost of providing a service in-house versus outsourcing to determine the more economical option.
Question 6: A head strength coach is asked to present next year's budget to athletic administration. The presentation should PRIMARILY emphasize:
- The total dollar amount requested
- How the requested budget aligns with program goals and athlete outcomes (Correct answer)
- A comparison with competing universities' budgets
- The coach's years of experience managing budgets
Correct answer: How the requested budget aligns with program goals and athlete outcomes
Linking budget requests to measurable program goals and athlete performance outcomes makes the strongest case to decision-makers.
Question 7: Encumbrance accounting in an athletic department budget refers to:
- Funds already spent and recorded
- Funds committed or reserved for future obligations not yet paid (Correct answer)
- Revenue collected in advance of services rendered
- Depreciation of long-term equipment assets
Correct answer: Funds committed or reserved for future obligations not yet paid
Encumbrances are purchase commitments (e.g., approved purchase orders) that reserve budget funds before actual payment occurs.
CSCS Financial Management & Budgeting 5
A strength coach is evaluating two vendors: Vendor A charges $500/unit with free shipping, and Vendor B charges $450/unit with $75 shipping per order.
For a single order of 10 units, which is less expensive?