CSM Financial Management & Budgeting Flashcards
6 cards from real CSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CSM Financial Management & Budgeting flashcards as text
Which financial document provides a snapshot of assets, liabilities, and equity at a specific point in time?
Answer: Balance sheet
A balance sheet shows an organization's financial position — assets, liabilities, and equity — as of a specific date.
What is the primary goal of cost-benefit analysis in service improvement initiatives?
Answer: To determine if the benefits of an improvement outweigh its costs
Cost-benefit analysis compares the total expected costs of an initiative against the total anticipated benefits to support sound decision-making.
A service manager is building a business case for a new CRM system. Which financial element is MOST critical to include?
Answer: Projected ROI and payback period
A business case must include projected ROI and payback period to justify the financial investment to decision-makers.
What does 'OpEx' refer to in service management financial planning?
Answer: Operating Expenditure — recurring costs to run the service operation
Operating Expenditure (OpEx) refers to the ongoing recurring costs required to run day-to-day service operations.
Which approach involves allocating indirect costs to services based on how much each service uses shared resources?
Answer: Activity-based costing
Activity-based costing assigns indirect costs to services based on the actual activities and resources each service consumes.
What financial risk should a CSM professional consider when outsourcing service functions to a third-party vendor?
Answer: Hidden costs, contract penalties, and loss of cost control
Outsourcing can expose an organization to hidden costs, contract penalty clauses, and reduced control over service expenses.