Practice Test Geeks(GMC) Growth Marketing Certification Practice Test
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Financial Management & Budgeting Flashcards

7 cards from real GMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Management & Budgeting flashcards as text

  1. A growth marketer has a $50,000 quarterly budget and wants to allocate it across channels. Which budgeting approach adjusts spend based on real-time performance data?

    Answer: Dynamic budget allocation

    Dynamic budget allocation shifts spend toward top-performing channels in real time, maximizing return on available capital.

  2. Which metric best indicates whether a paid acquisition channel is financially sustainable long-term?

    Answer: LTV:CAC ratio

    The LTV:CAC ratio compares customer lifetime value to acquisition cost, revealing whether a channel generates sustainable profit.

  3. A SaaS company spends $120,000 on marketing in Q1 and acquires 400 new customers. What is the CAC?

    Answer: $300

    $120,000 ÷ 400 customers = $300 CAC.

  4. When a marketing team uses 'contribution margin' to evaluate campaigns, what are they measuring?

    Answer: Revenue minus variable costs directly tied to the campaign

    Contribution margin = revenue minus variable costs, showing how much a campaign contributes toward covering fixed costs and profit.

  5. A growth team is deciding between two campaigns: Campaign A has a 3-month payback period and Campaign B has a 9-month payback period. Which is generally preferred and why?

    Answer: Campaign A, because faster payback frees capital for reinvestment sooner

    A shorter payback period means recovered spend can be redeployed faster, accelerating compounding growth.

  6. Which of the following best describes 'blended CAC'?

    Answer: Total marketing and sales costs divided by all new customers, regardless of channel

    Blended CAC divides total acquisition spend (all channels) by total new customers, providing a portfolio-level efficiency view.

  7. A marketer wants to determine how much budget to assign to a new experimental channel. Which principle from portfolio theory applies?

    Answer: Assign a small, capped percentage to test new channels while protecting core spend

    Portfolio theory supports allocating a small, risk-bounded portion to experimentation while protecting core channel spend.