GMC Financial Management & Budgeting 2

Question 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?

Accepted Answer

Dynamic budget allocation

Answer

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

Question 2

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

Accepted Answer

LTV:CAC ratio

Answer

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

Question 3

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

Accepted Answer

$300

Answer

$120,000 ÷ 400 customers = $300 CAC.

Question 4

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

Accepted Answer

Revenue minus variable costs directly tied to the campaign

Answer

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

Question 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?

Accepted Answer

Campaign A, because faster payback frees capital for reinvestment sooner

Answer

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

(GMC) Growth Marketing Certification Practice Test

(GMC) Growth Marketing Certification Practice Test

GMC Financial Management & Budgeting 2