Replacement of major building systems (e.g., chillers, boilers, roofs) falls under capital expenditures because these items are large, non-recurring, and add to or extend the life of facility assets. The capital budget accounts for these costs, which are not part of the day-to-day operations budget.
Correct: Capital budget (A) - Covers replacement of major equipment and infrastructure.
Incorrect:
B). Project fund - May finance special projects but not part of standard budgeting categories.
C). Depreciation fund - An accounting mechanism, not typically a direct budget line for replacement.
D). Operating budget - Covers recurring expenses like utilities, maintenance, and repairs, not full replacements.
References:
AHA/ASHE: Health Care Facility Budgeting Guidance.
CHFM Candidate Handbook - Financial Management domain: capital vs. operating budgeting.

NFPA 25 (2011), Standard for the Inspection, Testing, and Maintenance of Water-Based Fire Protection Systems, specifies that a fire pump flow test must be performed annually. This ensures that the pump delivers adequate flow and pressure under actual operating conditions. Weekly no-flow (churn) tests are also required, but full-flow condition testing is mandated at least once per year.
Reference: NFPA 25 (2011), Section 8.3.3.

Calculation:
Vendor 1 = $25,000 annually
Vendor 2 = $970 × 30 = $29,100 annually
Vendor 3 = $950 × 26 = $24,700 annually
Vendor 4 = $2,100 × 12 = $25,200 annually
Least expensive = Vendor 3 ($24,700).
References: CHFM Handbook - Financial Management, vendor bid analysis and cost comparison.

NFPA uses mandatory language to indicate requirements:
"Shall" = mandatory requirement (must comply).
"Should" = advisory or recommended practice.
Therefore, when NFPA states "shall," it represents a mandate.
D). mandate (Correct): Required compliance.
A). recommendation / B. guideline: NFPA uses "should" for recommendations.
C). performance standard: Not the intent of "shall" language.
References:
NFPA Manual of Style for NFPA Technical Committee Documents - Terminology definitions.
NFPA 101: Life Safety Code, Preface and style guide on the use of "shall" and "should." AHA/CHFM Candidate Handbook - Compliance domain (interpretation of NFPA codes).

Under the ADA Accessibility Guidelines (ADAAG), room identification signs must include raised tactile characters and Braille. These apply to permanent spaces such as patient rooms, restrooms, and offices.
C). room identification (Correct): Required by ADA to have tactile and Braille.
A). directional: May use visual characters only; Braille is not required.
B). informational: Same as directional, not required to have Braille.
D). mechanical spaces: These areas are typically staff-only; signs do not require tactile or Braille by ADA standards.
References:
Americans with Disabilities Act Accessibility Guidelines (ADAAG), Sections 216 and 703.
CHFM Compliance domain - regulatory requirements for accessibility.