GTP Finance & Budget Management Flashcards

Which document is most commonly used by travel managers to track and reconcile corporate travel expenses against an approved budget?

Answer: Travel expense report

Travel expense reports allow managers to match actual spending against approved budgets and flag variances.

A corporation wants to reduce travel costs by negotiating preferred rates with airlines. What type of agreement governs these arrangements?

Answer: Corporate rate agreement

Corporate rate agreements establish negotiated fares between a company and an airline based on committed volume.

What is a 'travel spend analysis' primarily used for in corporate travel management?

Answer: Identifying cost-saving opportunities and policy compliance gaps

Travel spend analysis reviews historical expenditure data to uncover savings opportunities and ensure policy adherence.

Which currency exchange strategy best protects a corporation from foreign exchange fluctuations on international travel budgets?

Answer: Hedging through forward contracts

Forward contracts lock in exchange rates in advance, shielding the company from adverse currency movements.

A travel manager notices hotel costs consistently exceed the approved per diem. What is the FIRST recommended action?

Answer: Benchmark rates against industry data and renegotiate hotel contracts

Benchmarking against industry averages helps determine whether the per diem is unrealistic or vendors are overcharging.

What is the primary purpose of a 'shadow pricing' approach in travel procurement?

Answer: Estimating the true cost of travel choices that deviate from policy

Shadow pricing assigns a cost value to out-of-policy bookings so management can quantify the financial impact of non-compliance.