CAFM Business and Information Management 2 — Questions and Answers
Question 1: A fleet manager wants to benchmark fuel costs against industry peers. Which data source is most appropriate for obtaining national fleet fuel cost benchmarks?
- Internal fuel purchase logs only
- NPTC or NAFA fleet benchmarking surveys (Correct answer)
- Manufacturer MSRP sheets
- State DMV registration records
Correct answer: NPTC or NAFA fleet benchmarking surveys
NAFA and NPTC publish industry benchmarking surveys that allow fleet managers to compare their fuel costs against national averages.
Question 2: Which financial metric measures how efficiently a fleet generates revenue relative to its total asset value?
- Net profit margin
- Return on assets (ROA) (Correct answer)
- Debt-to-equity ratio
- Current ratio
Correct answer: Return on assets (ROA)
Return on assets (ROA) measures how efficiently a company uses its assets to generate profit, making it relevant for evaluating fleet investments.
Question 3: A fleet information system should integrate with which back-office system to automate accounts payable for repair invoices?
- CRM software
- ERP or financial management system (Correct answer)
- Route optimization software
- Driver scheduling platform
Correct answer: ERP or financial management system
Integrating the fleet management system with an ERP or financial management system automates accounts payable workflows for repair invoices.
Question 4: When preparing a fleet budget, which cost category is typically classified as a fixed cost?
- Fuel expenses
- Tire replacements
- Vehicle depreciation (Correct answer)
- Tolls and parking
Correct answer: Vehicle depreciation
Vehicle depreciation is a fixed cost because it occurs regardless of mileage driven, while fuel, tires, and tolls vary with usage.
Question 5: A fleet manager receives a vendor proposal with net-30 payment terms and a 2% early-pay discount. What is the annualized cost of NOT taking the discount?
- Approximately 12%
- Approximately 24%
- Approximately 36% (Correct answer)
- Approximately 48%
Correct answer: Approximately 36%
Forgoing a 2/10 net-30 discount costs approximately 36% annualized, calculated using the formula: (discount % / (1 - discount %)) × (365 / days past discount period).
Question 6: Which type of fleet report would be MOST useful for identifying vehicles that consistently exceed planned maintenance budgets?
- Vehicle utilization report
- Variance analysis report by vehicle (Correct answer)
- Driver safety scorecard
- Fuel consumption summary
Correct answer: Variance analysis report by vehicle
A variance analysis report comparing actual vs. budgeted maintenance costs per vehicle directly identifies chronic over-budget units.
Question 7: Which data governance practice ensures that fleet records remain accurate and consistent across multiple systems?
- Ad hoc data entry by any staff member
- Establishing a single source of truth with defined data stewards (Correct answer)
- Storing all records in spreadsheets
- Allowing each department to maintain separate databases
Correct answer: Establishing a single source of truth with defined data stewards
Designating a single source of truth with assigned data stewards prevents duplicate or conflicting records across systems.
CAFM Business and Information Management 2
A fleet manager wants to benchmark fuel costs against industry peers.
Which data source is most appropriate for obtaining national fleet fuel cost benchmarks?