IFMA CFM Exam Practice Test Instant Access

Question 1

A tenant questions annual reconciliation charges for common area and operating expenses per their lease. What is the strongest business practice for ensuring accounting practices are sound?

ADouble-check all coding and charges and confirm that generally accepted accounting principles have been followed.

BPerform periodic audits by an internal or external auditing group that is not part of the accounting department.

CSuggest the tenant's chief accountant review your books and the lease.

Answer : B

Performing independent audits (Option B) ensures financial transparency, accountability, and compliance with industry standards.

Why Option B is Correct?

Internal or external audits verify accuracy, compliance, and identify errors.

Maintains credibility and trust with tenants.

IFMA's Finance & Business Core Competency highlights audits as a best practice in lease accounting.

Why Other Options Are Incorrect?

Option A: Internal checks help but do not provide independent verification.

Option C: Having a tenant's accountant review internal records creates a conflict of interest.

IFMA Core Competency: Finance & Business -- Lease financial accountability.

Source: IFMA Lease Accounting Guide (IFMA, 2023).

Question 2

A new hire has been provided with new uniforms and a $150 stipend for work boots. Within the first month, the employee gives a two-week notice. What actions should the manager take?

AAsk in a thoughtful and respectable tone for the employee to reimburse the organization for the uniforms and work boots.

BAbsorb the loss of the material in the operating budget under uniform depreciation.

CRefer to the employee handbook and follow organizational policy regarding uniform and work boot issuances to employees.

Answer : C

The correct action is to follow the organization's established policies (Option C) regarding uniforms and reimbursements.

Why Option C is Correct?

The employee handbook outlines uniform issuance, return policies, and potential reimbursement obligations.

Ensures consistent and legally compliant HR practices.

IFMA's Human Factors Core Competency emphasizes fair employment policies and adherence to company guidelines.

Why Other Options Are Incorrect?

Option A: Requesting reimbursement without policy backing may create legal and HR issues.

Option B: Absorbing the cost without policy review is not a sound business practice.

IFMA Core Competency: Human Factors -- HR policies in facility management.

Source: IFMA Employee Management Guide (IFMA, 2023).

Question 3

You are the Facility Manager for a retail strip mall with strong storefront style standards approved by the local government planning board. A long-term tenant, a Chinese restaurant, wants to construct a tile pagoda-style mansard that does not comply with the lease terms. How should you respond to this tenant's request?

AThe tenant cannot modify the entrance because the new entrance would not conform to the approved master plan of that shopping center, which has been approved by the local governmental planning board.

BThe tenant must hire an architect to design the modification to the entrance in compliance with the guidelines spelled out in the master real estate plan.

CThe tenant can modify the entrance, providing they pay for the improvement. This change must comply with the guidelines spelled out in the master real estate plan.

Answer : A

Since the shopping center's exterior design was pre-approved by the local planning board, modifications cannot be made without compliance (Option A).

Why Option A is Correct?

The master plan ensures aesthetic and architectural uniformity for the shopping center.

The tenant's request violates the approved design standards and would need official planning approval.

IFMA's Real Estate & Property Management Core Competency emphasizes that FM professionals must enforce lease terms and municipal zoning requirements.

Why Other Options Are Incorrect?

Option B: Even if an architect designs modifications, they must still conform to the master plan.

Option C: The tenant cannot make modifications simply by funding them; approval is required.

IFMA Core Competency: Real Estate & Property Management -- Lease compliance and property design standards.

Source: IFMA Commercial Property Management Guide (IFMA, 2023).

Question 4

A current tenant is questioning the charges from an annual reconciliation of common area and operating expenses, as allowed by their lease. What is the strongest business practice for making sure your accounting practices are sound?

ADouble-check all coding and charges and confirm that generally accepted accounting principles (GAAP) have been followed.

BPerform periodic audits by an internal or external auditing group that is not part of the accounting department.

CSuggest the tenant's chief accountant review your books and the lease.

Answer : B

Periodic audits by an independent internal or external auditing group (Option B) ensure accountability and accuracy in financial reporting.

Why Option B is Correct?

An independent audit ensures transparency, credibility, and compliance with lease agreements.

Prevents errors, overcharges, and disputes with tenants.

IFMA's Finance & Business Core Competency states that financial operations must adhere to best accounting practices, including third-party audits.

Why Other Options Are Incorrect?

Option A (Double-checking internally): Internal review alone is not as strong as an independent audit.

Option C (Tenant's accountant reviewing the books): Conflicts of interest may arise, and tenants do not have auditing authority.

IFMA Core Competency: Finance & Business -- Auditing financial records for facility operations.

Source: IFMA Accounting & Budgeting Guide (IFMA, 2023).

Question 5

A new hire has been provided with new uniforms and a $150 stipend to purchase new work boots. Within the first month of employment, the employee informs the manager that another job has been accepted and provides a two-week notice. What actions should the manager take regarding the material issuances?

AAsk in a thoughtful and respectful tone for the employee to reimburse the organization for the uniforms and work boots.

BAbsorb the loss of the material in the operating budget under uniform depreciation.

CRefer to the employee handbook and follow organizational policy regarding uniform and work boot issuances.

Answer : C

A facility manager must follow the organization's policy (Option C) to ensure compliance with employment agreements regarding uniforms and stipends.

Why Option C is Correct?

Workplace policies outline reimbursement rules for issued materials.

Ensures consistency in handling employee departures and prevents disputes.

IFMA's Human Factors Core Competency states that FM professionals must adhere to HR and organizational policies.

Why Other Options Are Incorrect?

Option A (Request reimbursement personally): Lacks formal enforcement and can cause disputes.

Option B (Absorb the loss): Not all organizations allow this, and a formal policy must be followed first.

IFMA Core Competency: Human Factors -- HR policies for uniform and equipment issuance.

Source: IFMA Workplace Compliance Guide (IFMA, 2023).

Question 6

Recently, an organization has flattened its structure versus that of a typical pyramid structure. As part of the restructure, the existing office building will be renovated. What type of design elements should a facility manager consider in the renovation?

AOffices for management, teaming areas, shorter workstation panels, and large conference rooms

BTeam areas, bigger workstations for files, offices for senior management, and fewer meeting rooms

CSpace for employee interaction, team areas, smaller workstations, and shorter panels

Answer : C

A flattened organizational structure promotes collaboration, open communication, and teamwork. To support this shift, a facility manager should implement an open-office design (Option C) with:

Smaller workstations and shorter panels to encourage transparency and communication.

Team areas for group collaboration to replace traditional management offices.

Space for employee interaction to enhance workplace engagement and informal discussions.

Why Option C is Correct?

A flatter structure removes hierarchical barriers, necessitating open workspaces and teamwork-focused design.

IFMA's Human Factors Core Competency emphasizes the importance of workspace design in supporting organizational culture and efficiency.

Why Other Options Are Incorrect?

Option A (Large conference rooms and management offices): Does not align with flattened structures, which emphasize collaboration over hierarchy.

Option B (Bigger workstations for files, fewer meeting rooms): Contradicts modern trends toward shared digital storage and team spaces.

IFMA Core Competency: Human Factors -- Workplace design for modern organizational structures.

Source: IFMA Workspace Planning Guide (IFMA, 2023).

Question 7

What process involves a skilled facilitator to reach a voluntary settlement in a dispute?

AMediation

BManagement escalation

CArbitration

Answer : A

Mediation (Option A) is a voluntary dispute resolution process where a neutral third party helps parties reach a mutually agreeable settlement.

Why Option A is Correct?

A mediator does not impose a decision but guides discussions toward a resolution.

Mediation is widely used in workplace disputes, contract negotiations, and FM conflict resolution.

IFMA's Human Factors Core Competency highlights mediation as an essential skill in managing workplace and vendor disputes.

Why Other Options Are Incorrect?

Option B (Management escalation): Involves escalating the issue to higher-level decision-makers, rather than resolving it voluntarily.

Option C (Arbitration): A legally binding process where a neutral arbitrator makes a final decision, rather than facilitating a mutual agreement.

IFMA Core Competency: Human Factors -- Mediation and conflict resolution in facility management.

Source: IFMA Conflict Resolution Guide (IFMA, 2023).

IFMA CFM Certified Facility Manager Exam Practice Test