Certified Facility Manager (CFM) Practice Exam

On average, what percentage of water costs is attributed to purchase costs, and what percentage corresponds to disposal costs?

1. 40/60

2. 30/70

3. 50/50

4. 70/30

The correct answer is: 50/50

The average percentage of water costs that is attributed to purchase costs and disposal costs often reflects a near-equal distribution, which is why the selection of a 50/50 split is appropriate. This interpretation stems from the understanding that both purchasing water from a utility provider and disposing of wastewater are critical components of water management in facilities. Many facilities find that the costs associated with obtaining water can be comparable to the costs incurred in treating and disposing of wastewater. This symmetry acknowledges that managing water usage wisely is crucial for cost control, as inefficiencies in either area can significantly affect a facility's operating expenses. While other splits, such as 40/60 or 30/70, might suggest a heavier weighting on either purchase or disposal costs, the 50/50 division reflects a more balanced view that aligns with standard industry practices and financial assessments related to water management. Consequently, this option illustrates a realistic expectation of water costing dynamics in facilities.