Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

During landfill operations, it is essential to estimate closure and post-closure monitoring costs each year. This is because, under regulatory requirements and accounting standards, landfills are recognized as having obligations that extend beyond their operational life. These costs include the expenses associated with safely closing the landfill, as well as ongoing monitoring and maintenance needs that continue for a specified period after closure to ensure environmental protection and compliance with regulations.

Estimating these costs helps ensure that adequate financial resources are set aside to cover the future obligations and reduces the risk of financial shortfalls later. This is a crucial practice for responsible financial management in government entities and helps in accurate budgeting, planning, and reporting.

In contrast, other aspects mentioned, such as revenue thresholds for operations, property value depreciation expenses, or annual operational cost assessments, are either less critical to the specific obligations of landfill management or do not have the same level of regulatory emphasis as closure and post-closure costs. These alternatives do not carry the same long-term liability and planning requirements as the costs associated with the closure and post-closure monitoring of landfills.