CSM Financial Management & Budgeting Flashcards
6 cards from real CSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CSM Financial Management & Budgeting flashcards as text
What is the purpose of a variance report in service financial management?
Answer: To compare actual spending against budgeted amounts
A variance report compares actual financial results against the budget to identify discrepancies and guide corrective planning.
Which cost category includes agent wages, supervisor salaries, and benefits in a service center?
Answer: Direct labor costs
Direct labor costs encompass wages, salaries, and benefits directly associated with service delivery personnel.
What is the purpose of a service-level agreement (SLA) from a financial perspective?
Answer: It defines penalties and credits that affect the department's revenue and costs
SLAs include financial penalties or credits that directly impact department costs when performance targets are missed or exceeded.
A CSM professional uses breakeven analysis primarily to do what?
Answer: Determine the point at which service revenues equal total costs
Breakeven analysis identifies the point at which total revenues equal total costs, indicating neither profit nor loss.
Which type of cost remains constant regardless of the volume of service interactions?
Answer: Fixed costs
Fixed costs such as facility rent and software licenses remain constant regardless of how many service interactions occur.
What does 'chargeback' mean in IT service financial management?
Answer: Billing internal departments for IT services they consume
Chargeback is an internal accounting process where IT service costs are allocated and billed to the business units that consume those services.