### What is deferred maintenance? - [x] Necessary maintenance and repairs that are postponed until the future - [ ] Maintenance performed ahead of schedule to avoid issues - [ ] Immediate repairs made to urgent issues - [ ] Regularly scheduled maintenance carried out on time > **Explanation:** Deferred maintenance refers to necessary maintenance, repairs, and upgrades or replacements that are deliberately postponed until a later date, often due to lack of funds, manpower, or other resources. This can lead to higher long-term costs and could impact cash flow negatively. ### What is a common cause of deferred maintenance? - [x] Lack of necessary funds - [ ] Overstaffing or excessive resources - [ ] Overestimation of project scope - [ ] Excess revenue allocation > **Explanation:** The most common cause of deferred maintenance is a lack of necessary funds to complete the project. When financial resources are scarce, certain maintenance works may be postponed, which can lead to more severe and costly problems in the future. ### What is an unintended consequence of deferred maintenance? - [ ] Reduced future costs - [ ] Improved cash flow - [ ] Immediate property improvement - [x] Higher long-term costs > **Explanation:** Deferred maintenance often ends up being more costly over the long term than performing the maintenance on schedule. Postponing maintenance can lead to more significant damage and more expensive repairs later. ### How can deferred maintenance affect cash flow? - [ ] It typically improves cash flow by reducing immediate spending - [x] It almost always leads to a loss in cash flow - [ ] It stabilizes cash flow by spreading out costs over time - [ ] It has no effect on cash flow > **Explanation:** Deferred maintenance typically leads to a loss in cash flow as continued neglect can cause more extensive damage and thus, more expensive repairs in the future. This increase in costs can negatively impact the financial health of the property. ### Besides lack of funds, what is another reason for deferred maintenance? - [ ] Surplus of available resources - [ ] Excessive operational efficiency - [x] Lack of manpower - [ ] Overbudgeting for repairs > **Explanation:** Deferred maintenance can also occur due to a lack of manpower available to carry out the necessary work. Without sufficient human resources, even well-funded projects might be postponed, leading to potential future issues. ### What is the best way to avoid the problems associated with deferred maintenance? - [ ] Ignore minor repairs and focus only on critical ones - [x] Ensure that the cost of preventative maintenance and capital improvements are budgeted - [ ] Spend more on immediate repairs than budgeted - [ ] Wait until issues are unavoidable before addressing them > **Explanation:** The best way to avoid problems associated with deferred maintenance is by budgeting appropriately for the cost of preventative maintenance and capital improvements. By planning and allocating sufficient funds, you can address maintenance needs on schedule and prevent more costly issues in the future. ### What may happen if minor maintenance issues are ignored and deferred? - [ ] They often resolve on their own - [ ] They remain insignificant - [x] They can develop into more major issues - [ ] They usually decrease the value of the property slightly > **Explanation:** Ignoring and deferring even minor maintenance issues can result in them developing into more significant problems. This can lead to increased repair costs and potential damage to the property, which may negatively impact its value. ### Why is deferred maintenance described as often costing more in the long term? - [ ] It's a form of cost-saving - [ ] It involves unnecessary spending initially - [ ] It never includes preventative measures - [x] Long-term neglect can lead to more severe and costly repairs > **Explanation:** Deferred maintenance is often more costly long-term because small issues left unaddressed can develop into significant problems. As these problems worsen, the cost and effort required to repair them increases, making the initial savings from deferring maintenance a false economy. ### Which of the following best describes deferred maintenance? - [ ] Maintenance performed immediately as issues arise - [ ] Maintenance work carried out at a pace slower than necessary - [x] Necessary repairs are delayed until resources become available - [ ] Proactive maintenance addressing potential future problems > **Explanation:** Deferred maintenance involves delaying necessary repairs until a future date when resources such as funds or manpower become available. This is often due to immediate budget constraints or lack of immediate necessity. ### How can organizations ensure they do not end up deferring maintenance? - [x] Include costs for preventative maintenance in the budget - [ ] Wait for issues to become critical before addressing them - [ ] Ignore non-urgent repairs completely - [ ] Rely solely on emergency funds > **Explanation:** Organizations can ensure they do not defer maintenance by including the costs for preventative maintenance and capital improvements in their budget. This proactive financial planning helps in timely addressing maintenance needs, avoiding more significant problems, and ensuring smooth operatio