CMGT 4340 - Test 1 Review-Questions with
Correct Answers
Explain financial management
Financial management is the use of a company's financial resources. These resources include
cash and assets such as equipment
Why is CMGT financial management different?
Project oriented, decentralized production, has payment terms, and involves heavy use of
subcontractors
Responsibilities for Construction Management - Financial Managers
-Construction company - owner's, GM's, and CFO
-Delegated to following specific porjects - estimators, project managers, and superintendents
Responsibilities of financial managers
account for financial resources, managing costs and profits, managing cash flows, and chosing
among financial alternatives
Managing cost and profits
controlling project costs, monitoring project and company profitability, setting labor burden
markups, developing and tracking general overhead budgets, setting minimum profit margin for
use in bidding, analyzing profitability of different parts of the company and making changes to
improve profitability
Managing cash flow
Correct Answers
Explain financial management
Financial management is the use of a company's financial resources. These resources include
cash and assets such as equipment
Why is CMGT financial management different?
Project oriented, decentralized production, has payment terms, and involves heavy use of
subcontractors
Responsibilities for Construction Management - Financial Managers
-Construction company - owner's, GM's, and CFO
-Delegated to following specific porjects - estimators, project managers, and superintendents
Responsibilities of financial managers
account for financial resources, managing costs and profits, managing cash flows, and chosing
among financial alternatives
Managing cost and profits
controlling project costs, monitoring project and company profitability, setting labor burden
markups, developing and tracking general overhead budgets, setting minimum profit margin for
use in bidding, analyzing profitability of different parts of the company and making changes to
improve profitability
Managing cash flow
