Certified Facility Manager (CFM) Practice Exam

What is typically the largest portion of the maintenance department's POM expenditure?

1. Materials and supplies

2. Contracted services

3. Wages and benefits

4. Equipment purchases

The correct answer is: Wages and benefits

The largest portion of the maintenance department's Planned Operating Maintenance (POM) expenditure is typically attributed to wages and benefits. In most facilities, personnel costs, which include salaries, wages, health benefits, pensions, and other related expenses, constitute the most significant part of the budget. Maintenance staff are essential to the smooth operation of any facility, and their compensation reflects both their importance and the need for skilled labor in maintaining infrastructure, systems, and equipment. Wages and benefits often dominate the operating budget because a well-trained maintenance workforce is critical for timely and effective maintenance tasks, which directly impact the facility's performance and longevity. High turnover rates in maintenance positions can also lead to increased training and hiring costs, further solidifying this expenditure category as the largest in the budget. The other options such as materials and supplies, contracted services, and equipment purchases do represent significant costs in maintenance expenditures, but they generally do not surpass the costs associated with human resources. These other components are critical in supporting the maintenance activities but are typically more variable and less predictable than the stable, substantial expense of employee wages and benefits.