CFM Exam Dumps | In planning your operating budget for the next fiscal year, what should NOT be included?

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Question 116/122

In planning your operating budget for the next fiscal year, what should NOT be included?

A. Quarterly belt and filter changes

B. Preventive maintenance during annual shutdown

C. Electrical utility costs

D. Allowance to overhaul the system's motors that will soon be inoperative

Correct Answer: D

Operating budgets focus on recurring costs related to facility maintenance and operation. The allowance for an overhaul of motors is a capital expense, not an operating expense.
* Why the other options are correct to include in an operating budget:
* (A) Quarterly belt and filter changes are part of routine maintenance.
* (B) Preventive maintenance during shutdown ensures ongoing operational efficiency.
* (C) Electrical utility costs are an essential operational expense.
Capital expenditures, such as overhauls or major system replacements, belong in a capital improvement budget.

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