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 notices that doubling the paid search budget increased conversions by only 40%. This illustrates which economic concept?

    Answer: Diminishing marginal returns

    Diminishing marginal returns occur when additional investment yields proportionally smaller incremental results, common as channels approach saturation.

  2. Which budget allocation framework assigns spend based on each channel's proven contribution to pipeline or revenue, rather than historical precedent?

    Answer: Performance-based attribution budgeting

    Performance-based attribution budgeting ties spend decisions to measured contribution to revenue outcomes rather than legacy allocations.

  3. A growth team is running an 'always-on' evergreen campaign alongside seasonal promotional bursts. Which budget structure best supports this dual approach?

    Answer: Divide budget into a fixed base layer for evergreen and a flexible reserve for bursts

    A two-layer budget (base + flexible reserve) ensures consistent always-on performance while preserving capital for high-opportunity burst moments.

  4. What is the primary risk of using 'last-click attribution' when making budget allocation decisions?

    Answer: It under-credits early touchpoints, leading to underinvestment in top-of-funnel channels

    Last-click attribution gives full credit to the final touchpoint before conversion, systematically undervaluing awareness and nurture channels that drove consideration.

  5. A growth marketer's campaign has a CAC of $250 and an average customer LTV of $500. The payback period is 12 months. What is the LTV:CAC ratio?

    Answer: 2:1

    $500 LTV ÷ $250 CAC = 2:1 LTV:CAC ratio, which is below the commonly recommended 3:1 threshold.

  6. Which practice helps growth marketers avoid 'budget leakage' in paid media campaigns?

    Answer: Implementing negative keyword lists, audience exclusions, and placement blocklists

    Negative keywords, audience exclusions, and placement blocklists prevent ad spend from being wasted on irrelevant clicks and low-quality placements.

  7. When a CFO requests 'marketing efficiency ratio' (MER) reporting, what calculation are they most likely expecting?

    Answer: Gross revenue divided by total marketing spend across all channels

    MER (Marketing Efficiency Ratio) = Total Revenue ÷ Total Marketing Spend, providing a top-line view of how much revenue each marketing dollar generates.