CHFM FINANCE AND
ADMINISTRATION EXAM QUESTIONS
AND ANSWERS
What does the acronym FTE stand for? - Correct Answers -Full Time Equivalent
What are the number of hours that make up an FTE? - Correct Answers -40 hours per
week; 2080 hours per year
40 hours per week x 52 weeks = 2,080 hours
What are budgeted hours? - Correct Answers -Budgeted hours are estimated hours that
an employee works per pay period in a particular assignment restricted by the planned
expenditure for a fiscal year.
How is overtime defined? - Correct Answers -Overtime is defined as greater than 40
hours per week or greater than 2,080 hours per year.
Who is eligible for overtime under the Fair Labor Standards Act (FLSA)? - Correct
Answers -Non-exempt Employee
If you lease an entire building, what do you use to calculate the lease cost? - Correct
Answers -GSF (Gross Square Feet)
How do you calculate a partial building lease? - Correct Answers -To calculate a partial
building lease, use square footage from the leased portion, then deduct common space
shared with other tenants (mechanical space, public restrooms, lobbies, etc.)
What does the acronym CHFM stand for? - Correct Answers -Certified Healthcare
Facility Manager
What is a prime reason that facilities engage in energy management? - Correct
Answers -Cost savings
Exempt employee (salaried, not eligible for overtime) Non-exempt employee (eligible for
overtime) eligibility, recordkeeping and child labor standards affecting full-time and part-
, time workers The Fair Labor Standards Act (FLSA) is a federal law which establishes
minimum wage, overtime pay sector and in federal, state and local governments.
What is the definition of productive - Correct Answers -Productive time includes actual
hours worked. This includes training hours, overtime hours, meeting time, work order
entry time, field service work, etc.
What is the definition of non-productive time? - Correct Answers -Non-productive time
includes vacation time or paid time off (PTO), sick time, holidays and leave of absence.
How many paid FTE's would be required for two eight hour shifts for seven days
assuming 10% non-productive time? - Correct Answers -3.08 FTE's
2 employees x 8 hours x 7 days=112 hours
112 hours x .10 non-productive hours = 11.2 hours
112 hours + 11.2 hours 123.2 hours
123.2 hours /40 hours per week= 3.08 FTEs
List what is included in capital costs. - Correct Answers -Equipment cost
Renovation cost
New construction cost
Organizations set a capital threshold to determine between capital and operating
expense. This threshold varies by institution
List what included in operating costs. - Correct Answers -Salaries & benefits
Utilities cost
Supplies
Service contracts
Repairs & maintenance
What is the formula for Facility Condition Index (FCI) that is used to demonstrate the
financial efficiency of a building repair or renovation? - Correct Answers -FCI = Sum of
Deficiencies or Necessary Repairs
Current Replacement Value ($)
How do you calculate Facility Condition Index (FCI) if your needed repairs are $4 million
and the current replacement value is $20 million? - Correct Answers -$4,000,000 in
needed repairs = FCI .20 or 20%
$20,000,000 in current replacement value
FCI= Sum of Deficiencies or Necessary Repairs ($)
Current Replacement Value ($)
Identify all components of the following formula:
LCC = C+ M + E+R-S - Correct Answers -LCC - Life-Cycle Cost
ADMINISTRATION EXAM QUESTIONS
AND ANSWERS
What does the acronym FTE stand for? - Correct Answers -Full Time Equivalent
What are the number of hours that make up an FTE? - Correct Answers -40 hours per
week; 2080 hours per year
40 hours per week x 52 weeks = 2,080 hours
What are budgeted hours? - Correct Answers -Budgeted hours are estimated hours that
an employee works per pay period in a particular assignment restricted by the planned
expenditure for a fiscal year.
How is overtime defined? - Correct Answers -Overtime is defined as greater than 40
hours per week or greater than 2,080 hours per year.
Who is eligible for overtime under the Fair Labor Standards Act (FLSA)? - Correct
Answers -Non-exempt Employee
If you lease an entire building, what do you use to calculate the lease cost? - Correct
Answers -GSF (Gross Square Feet)
How do you calculate a partial building lease? - Correct Answers -To calculate a partial
building lease, use square footage from the leased portion, then deduct common space
shared with other tenants (mechanical space, public restrooms, lobbies, etc.)
What does the acronym CHFM stand for? - Correct Answers -Certified Healthcare
Facility Manager
What is a prime reason that facilities engage in energy management? - Correct
Answers -Cost savings
Exempt employee (salaried, not eligible for overtime) Non-exempt employee (eligible for
overtime) eligibility, recordkeeping and child labor standards affecting full-time and part-
, time workers The Fair Labor Standards Act (FLSA) is a federal law which establishes
minimum wage, overtime pay sector and in federal, state and local governments.
What is the definition of productive - Correct Answers -Productive time includes actual
hours worked. This includes training hours, overtime hours, meeting time, work order
entry time, field service work, etc.
What is the definition of non-productive time? - Correct Answers -Non-productive time
includes vacation time or paid time off (PTO), sick time, holidays and leave of absence.
How many paid FTE's would be required for two eight hour shifts for seven days
assuming 10% non-productive time? - Correct Answers -3.08 FTE's
2 employees x 8 hours x 7 days=112 hours
112 hours x .10 non-productive hours = 11.2 hours
112 hours + 11.2 hours 123.2 hours
123.2 hours /40 hours per week= 3.08 FTEs
List what is included in capital costs. - Correct Answers -Equipment cost
Renovation cost
New construction cost
Organizations set a capital threshold to determine between capital and operating
expense. This threshold varies by institution
List what included in operating costs. - Correct Answers -Salaries & benefits
Utilities cost
Supplies
Service contracts
Repairs & maintenance
What is the formula for Facility Condition Index (FCI) that is used to demonstrate the
financial efficiency of a building repair or renovation? - Correct Answers -FCI = Sum of
Deficiencies or Necessary Repairs
Current Replacement Value ($)
How do you calculate Facility Condition Index (FCI) if your needed repairs are $4 million
and the current replacement value is $20 million? - Correct Answers -$4,000,000 in
needed repairs = FCI .20 or 20%
$20,000,000 in current replacement value
FCI= Sum of Deficiencies or Necessary Repairs ($)
Current Replacement Value ($)
Identify all components of the following formula:
LCC = C+ M + E+R-S - Correct Answers -LCC - Life-Cycle Cost
