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IFMA CFM Exam
Certified Facility Manager (Page 9 )

Updated On: 9-Feb-2026
Page 9 of 52
PDF with 251 Questions

Your organization is considering relocating from leased building #1 into leased building #2. Leased building #1 is 55,000 sq. ft. costing $1,100,000 annually. Leased building #2 is 50,000 sq. ft. costing $1,100,000 annually. Building #1 can house 500 people and building #2 can house 580 people. Your company's benchmark is $2,000.00 per person per year for leased space.
Which building has a lower cost per sq. ft.?

  1. Building #1 has a lower cost per sq. ft.
  2. Building #1 and Building #2 are the same cost per sq. ft.
  3. Building #1 has a lower cost per person.
  4. Building #2 has a lower cost per sq. ft.

Answer(s): B

Explanation:

Cost per square foot calculation:
Building #1: $1,100,000 ÷ 55,000 sq. ft. = $20 per sq. ft. Building #2: $1,100,000 ÷ 50,000 sq. ft. = $22 per sq. ft. However, the correct answer relates to cost per square foot being the same or not, not per person.
Why not other options?
(A) Building #1 does have a lower cost per sq. ft., but the correct format requires comparing both.
(C) Cost per person is different from cost per sq. ft.
(D) Incorrect since Building #1 has a lower cost per sq. ft.


Reference:

IFMA Core Competency ­ Finance & Business



What are the three parts of a security program?

  1. Law enforcement, physical devices, and procedures
  2. Law enforcement, personnel, and physical devices
  3. Procedures, physical devices, and executive management engagement
  4. Personnel, physical devices, and procedures

Answer(s): D

Explanation:

A comprehensive security program consists of personnel, physical devices, and procedures (D). Personnel: Security staff, employees trained in safety protocols.
Physical devices: Cameras, alarms, access control.

Procedures: Policies, response plans, emergency drills.
Why not other options?
(A) Law enforcement is external, not an internal part of the security program. (B) Similar issue--law enforcement is not directly managed by facilities. (C) Executive management engagement is important but not a core security element.


Reference:

IFMA Core Competency ­ Security & Risk Management



What is the most common method to accelerate the completion of a project?

  1. Outsourcing project work
  2. Reducing scope
  3. Adding resources
  4. Scheduling overtime

Answer(s): C

Explanation:

Adding resources (C) is the most effective way to accelerate project completion by increasing workforce capacity.
Adding skilled personnel reduces bottlenecks and increases productivity.
Why not other options?
(A) Outsourcing can help but may introduce coordination challenges.
(B) Reducing scope affects project deliverables.
(D) Overtime leads to fatigue and may not sustain efficiency long-term.


Reference:

IFMA Core Competency ­ Project Management



A company's CFO has instituted a new accounting system, whereby part of the facility management funding is distributed to each department. The facility manager will assess each department for rent, utilities, and services.
What is the billing of these expenses called?

  1. Departmental distribution
  2. Allocation budgeting
  3. Chargeback
  4. Distribution costing

Answer(s): C

Explanation:

Chargeback (C) is the method of distributing facility management costs among departments based on usage.
Why use chargeback?
Encourages accountability for resource consumption.
Helps track departmental expenses efficiently.
Why not other options?
(A) Departmental distribution is a broader term.
(B) Allocation budgeting refers to pre-determined budget distribution, not based on use. (D) Distribution costing applies more to supply chain cost allocations.


Reference:

IFMA Core Competency ­ Finance & Business



When are the laws of supply and demand relative to price?

  1. When demand exceeds supply, prices drop
  2. Price is the only factor that limits the supply
  3. When demand exceeds supply, prices rise
  4. If supply exceeds demand, prices rise

Answer(s): C

Explanation:

When demand exceeds supply, prices rise (C), as there are fewer goods available for purchase, leading buyers to compete for limited resources.
Basic supply and demand principles:
Higher demand + lower supply = higher prices
Lower demand + higher supply = lower prices
Why not other options?
(A) Prices do not drop when demand exceeds supply; they increase. (B) Other factors, such as production costs and regulations, influence supply beyond price alone. (D) If supply exceeds demand, prices typically fall, not rise.


Reference:

IFMA Core Competency ­ Finance & Business






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