GMC Financial Management & Budgeting 3

Question 1

What does a 'burn rate' tell a growth marketer about a campaign or business?

Accepted Answer

How quickly available cash or budget is being spent over a period

Answer

Burn rate measures how fast cash or allocated budget is consumed, helping teams forecast when funds will run out.

Question 2

A growth team's Q3 campaign generated $500,000 in revenue on a $100,000 budget. What is the ROAS?

Accepted Answer

5x

Answer

$500,000 ÷ $100,000 = 5x ROAS (Return on Ad Spend).

Question 3

Which scenario best represents an 'above-the-line' (ATL) budget expenditure in growth marketing?

Accepted Answer

Running a national TV commercial for broad brand awareness

Answer

ATL spending refers to mass-market, non-targeted media like TV, radio, and print aimed at broad awareness.

Question 4

A company's monthly marketing budget is $30,000 and it wants to maintain an LTV:CAC ratio of at least 3:1, with average LTV of $900. What is the maximum acceptable CAC?

Accepted Answer

$300

Answer

With LTV of $900 and a minimum 3:1 ratio, max CAC = $900 ÷ 3 = $300.

Question 5

In growth marketing budgeting, what is the primary purpose of a 'holdout group' in spend experiments?

Accepted Answer

To establish a control baseline for measuring the true incremental impact of spend

Answer

A holdout group (unexposed control) allows marketers to measure the incremental lift attributable to the campaign rather than organic behavior.

(GMC) Growth Marketing Certification Practice Test

(GMC) Growth Marketing Certification Practice Test

GMC Financial Management & Budgeting 3