Financial Management & Budgeting Flashcards
7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Management & Budgeting flashcards as text
A cruise line pays 12% base commission plus a 2% override for preferred agents. On a $5,000 booking, how much more does a preferred agent earn compared to a non-preferred agent?
Answer: $100
The 2% override on $5,000 = $100 additional earnings for preferred agents versus non-preferred agents.
When comparing the total cost of a cruise vs. an all-inclusive land resort, which expense is typically NOT included in a standard cruise fare?
Answer: Shore excursions
Shore excursions are sold separately and are not included in standard cruise fares, unlike meals and entertainment.
A client wants to book a suite at $6,800 for a 10-night cruise. The cruise line is offering a 'Kids Sail Free' promotion where the third and fourth passengers sail for port taxes only ($120 each). What is the total cabin cost for two adults and two children?
Answer: $7,040
$6,800 suite fare + $120 × 2 = $240 for children's port taxes = $7,040 total.
Which financial benefit does a consortium membership typically provide to independent travel agents?
Answer: Higher commission tiers due to collective buying power
Consortiums pool member sales volume to negotiate higher commission tiers from cruise lines than agents could achieve individually.
A travel agent's agency charges 10% commission on cruise fares. The agent's split with the agency is 70/30 (agent/agency). On a $4,500 cruise booking, what does the agent personally earn?
Answer: $315
$4,500 × 10% = $450 total commission; the agent's 70% share = $450 × 0.70 = $315.
Which factor MOST directly affects the base price difference between an inside cabin and a balcony cabin on the same sailing?
Answer: Cabin size, natural light, and private outdoor access
Balcony cabins command higher prices primarily because they offer more square footage, natural light through floor-to-ceiling windows, and private outdoor space.
A cruise line's cancellation policy charges 25% for cancellations 89–75 days out, 50% for 74–61 days, and 100% for 60 days or fewer. A client cancels 70 days before sailing on a $2,800 booking. What is the penalty?
Answer: $1,400
70 days before departure falls in the 74–61 day window, so the 50% penalty applies: 50% × $2,800 = $1,400.