Investment Strategies Flashcards
6 cards from real CEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Investment Strategies flashcards as text
What is budget variance analysis in CEP financial management?
Answer: Comparing actual spending against budgeted amounts to explain differences
Variance analysis compares actual results against budget, calculating differences and investigating causes.
What differentiates fixed from variable costs in CEP?
Answer: Fixed costs stay constant; variable costs change with volume
Fixed costs (rent, salaries) remain constant; variable costs (materials, commissions) fluctuate with activity volume.
What is cash flow management in CEP practice?
Answer: Optimizing the timing of money coming in and going out
Cash flow management tracks and optimizes the timing of inflows and outflows to ensure sufficient funds.
What is financial forecasting in CEP practice?
Answer: Predicting future conditions based on historical data and trends
Forecasting uses historical data and trends to project future financial conditions, supporting strategic planning.
What is an internal control in CEP financial management?
Answer: A process providing assurance about financial reporting reliability
Internal controls safeguard assets, ensure accurate reporting, promote efficiency, and ensure compliance.
What does ROI measure in CEP financial analysis?
Answer: Gain or loss relative to the investment amount
ROI compares net gain or loss to initial investment cost, helping compare profitability of different options.