IREM Certified Property Manager (CPM) Practice Test 2025 – All-in-One Guide to Exam Success!

Question: 1 / 400

What is one of the primary uses of an operating budget?

To ensure maximum rent collection

To set a monthly meal plan

To record variances between budget estimates and actual results

One of the primary uses of an operating budget is to record variances between budget estimates and actual results. This function is crucial for property managers as it allows them to track financial performance and assess how well the property is adhering to its financial plan. By comparing the estimated income and expenses detailed in the budget with the actual income and expenses incurred during the period, property managers can identify areas where financial performance may be deviating from expectations. Understanding these variances is essential for making informed decisions about future budgeting, operational adjustments, and overall financial management of the property.

The operating budget serves as a financial roadmap and offers insights that can help in strategic planning, corrective actions, and optimizing the property's financial health over time.

Get further explanation with Examzify DeepDiveBeta

To define property repair schedules

Next Question

Report this question

Download IREM Certified Property Manager (CPM) Practice Test 2025 – All-in-One Guide to Exam Success! PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy