GTP GTP Finance & Budget Management 1

Question 1

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

Accepted Answer

Travel expense report

Answer

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

Question 2

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

Accepted Answer

Corporate rate agreement

Answer

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

Question 3

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

Accepted Answer

Identifying cost-saving opportunities and policy compliance gaps

Answer

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

Question 4

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

Accepted Answer

Hedging through forward contracts

Answer

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

Question 5

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

Accepted Answer

Benchmark rates against industry data and renegotiate hotel contracts

Answer

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

(GTP) Global Travel Professional Practice Test