CSM CSM Financial Management & Budgeting 3

Question 1

Which financial document provides a snapshot of assets, liabilities, and equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

A balance sheet shows an organization's financial position — assets, liabilities, and equity — as of a specific date.

Question 2

What is the primary goal of cost-benefit analysis in service improvement initiatives?

Accepted Answer

To determine if the benefits of an improvement outweigh its costs

Answer

Cost-benefit analysis compares the total expected costs of an initiative against the total anticipated benefits to support sound decision-making.

Question 3

A service manager is building a business case for a new CRM system. Which financial element is MOST critical to include?

Accepted Answer

Projected ROI and payback period

Answer

A business case must include projected ROI and payback period to justify the financial investment to decision-makers.

Question 4

What does 'OpEx' refer to in service management financial planning?

Accepted Answer

Operating Expenditure — recurring costs to run the service operation

Answer

Operating Expenditure (OpEx) refers to the ongoing recurring costs required to run day-to-day service operations.

Question 5

Which approach involves allocating indirect costs to services based on how much each service uses shared resources?

Accepted Answer

Activity-based costing

Answer

Activity-based costing assigns indirect costs to services based on the actual activities and resources each service consumes.

CSM - Certified Service Manager Practice Test