Property Management Licensing Practice Exam · Question
Maria is the property manager for a 10-unit apartment building in Vancouver. The annual operating budget projected total rental income of $240,000 and operating expenses of $80,000. At year-end, actual rental income was $230,000 and actual operating expenses were $85,000. What is the total operating budget variance for the year?
The change in NOI is (Actual Income - Budgeted Income) - (Actual Expenses - Budgeted Expenses) = ($230,000 - $240,000) - ($85,000 - $80,000) = (-$10,000) - (+$5
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Question: Maria is the property manager for a 10-unit apartment building in Vancouver. The annual operating budget projected total rental income of $240,000 and operating expenses of $80,000. At year-end, actual rental income was $230,000 and actual operating expenses were $85,000. What is the total operating budget variance for the year?
Answer options: ✅ -$15,000 unfavourable
- +$5,000 favourable
- -$10,000 unfavourable
- +$15,000 favourable
Correct answer: -$15,000 unfavourable
Explanation: The change in NOI is (Actual Income - Budgeted Income) - (Actual Expenses - Budgeted Expenses) = ($230,000 - $240,000) - ($85,000 - $80,000) = (-$10,000) - (+$5,000) = -$15,000 unfavourable variance.
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