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
What is the primary purpose of a service department budget in CSM practice?
Answer: To allocate resources efficiently and plan for operational costs
A service department budget allocates resources efficiently and ensures operational costs are planned and controlled.
Which financial metric measures the cost of resolving a single customer issue?
Answer: Cost per ticket
Cost per ticket calculates the total service expense divided by the number of resolved customer issues.
What does ROI stand for in service management financial analysis?
Answer: Return on Investment
ROI (Return on Investment) measures the financial benefit gained relative to the cost of a service initiative.
A service manager notices cost-per-contact has risen 20% over the previous quarter. What is the BEST first step?
Answer: Analyze the root causes driving increased costs
Analyzing root causes identifies whether the cost increase stems from volume, efficiency, or systemic issues before taking corrective action.
Which budgeting approach sets each budget line at zero and requires justification for every expense each period?
Answer: Zero-based budgeting
Zero-based budgeting starts from zero each period and requires all expenses to be justified regardless of prior spending history.
What is a capital expenditure (CapEx) in service management?
Answer: A long-term investment in assets such as equipment or software systems
Capital expenditures are long-term investments in assets that provide value over multiple years, as opposed to recurring operating expenses.