Certified Facility Manager (CFM) Practice Exam 2025 – All-in-One Resource for Exam Success!

Question: 1 / 400

On average, what percentage of water costs is attributed to purchase costs, and what percentage corresponds to disposal costs?

40/60

30/70

50/50

The correct response indicates that on average, water costs are evenly split between purchase costs and disposal costs, with each accounting for approximately 50%. This reflects a common understanding in facility management and budgeting, where both the procurement of water and the expenses associated with its disposal (such as wastewater treatment and environmental compliance) are crucial factors in total water management.

This acknowledgment of an equal division between the two costs is essential for adequate financial planning and resource allocation within facility management. By recognizing that both segments represent a significant financial responsibility, managers can work towards strategies for water conservation and efficiency improvements, ultimately leading to cost savings.

In contrast, the other options suggest a disparity that may not accurately reflect typical utility expense breakdowns. A 40/60 or 30/70 split implies an uneven allocation that might undervalue the impact of disposal costs, which are often influenced by regulatory requirements and operational practices. Likewise, a 70/30 division would suggest an excessive burden on purchase costs compared to disposal, which doesn’t typically hold true for most facilities. Hence, understanding the balance between these costs is critical for effective facility management.

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70/30

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