APPA CEFP Questions with Correct Answers
Dollars spent per gross square foot
A facilities department wants a KPI that shows how much it spends to operate and maintain
its buildings relative to the size of its physical plant. Which measure is most appropriate?
Four elements are central to effective leadership?
Values, communication, empowerment, and self-understanding
Vision
Demonstrates the organization's desired future direction through decisions, communication,
and daily behavior.
Benchmarking
A facilities department is comparing its performance with similar institutions to identify gaps
and improvement opportunities. What is this practice called?
Risk Register
Which statement best describes the purpose of a risk register in facilities management?
Life-cycle cost analysis
When evaluating a proposed facilities project, which analysis compares the total costs of
ownership over the asset's useful life, including acquisition, operation, maintenance, and
replacement?
Segregation of duties
, A facilities department wants to prevent fraud and reduce the chance that one employee could
authorize, process, and conceal an improper transaction. Which internal control is most
important?
Balance sheet
Which financial statement shows an organization's assets, liabilities, and net assets at a
specific point in time?
Variance analysis
A facilities leader compares actual spending for the quarter with the approved budget and
investigates meaningful differences. What is this process called?
Capitalization
A department purchases a major piece of equipment that will provide value for many years.
Rather than recording the full cost as an expense immediately, the organization records it as
an asset and expenses it over time. What is this treatment called?
Incremental budgeting
Which budgeting approach begins with the prior year's budget and adjusts individual line
items for anticipated changes?
Break-even analysis
A facilities department wants to identify the point at which total revenue equals total costs,
meaning the operation is neither generating a profit nor a loss. What analysis is being used?
Cost-benefit analysis
A facilities department is deciding whether to outsource custodial services. Which analysis
compares the expected financial benefits of outsourcing against its total expected costs?
Dollars spent per gross square foot
A facilities department wants a KPI that shows how much it spends to operate and maintain
its buildings relative to the size of its physical plant. Which measure is most appropriate?
Four elements are central to effective leadership?
Values, communication, empowerment, and self-understanding
Vision
Demonstrates the organization's desired future direction through decisions, communication,
and daily behavior.
Benchmarking
A facilities department is comparing its performance with similar institutions to identify gaps
and improvement opportunities. What is this practice called?
Risk Register
Which statement best describes the purpose of a risk register in facilities management?
Life-cycle cost analysis
When evaluating a proposed facilities project, which analysis compares the total costs of
ownership over the asset's useful life, including acquisition, operation, maintenance, and
replacement?
Segregation of duties
, A facilities department wants to prevent fraud and reduce the chance that one employee could
authorize, process, and conceal an improper transaction. Which internal control is most
important?
Balance sheet
Which financial statement shows an organization's assets, liabilities, and net assets at a
specific point in time?
Variance analysis
A facilities leader compares actual spending for the quarter with the approved budget and
investigates meaningful differences. What is this process called?
Capitalization
A department purchases a major piece of equipment that will provide value for many years.
Rather than recording the full cost as an expense immediately, the organization records it as
an asset and expenses it over time. What is this treatment called?
Incremental budgeting
Which budgeting approach begins with the prior year's budget and adjusts individual line
items for anticipated changes?
Break-even analysis
A facilities department wants to identify the point at which total revenue equals total costs,
meaning the operation is neither generating a profit nor a loss. What analysis is being used?
Cost-benefit analysis
A facilities department is deciding whether to outsource custodial services. Which analysis
compares the expected financial benefits of outsourcing against its total expected costs?
