CEH - Certified Executive Housekeeper Budgeting and Inventory Control Questions and Answers

Question 1

An Executive Housekeeper is preparing the annual budget. The purchase of new, energy-efficient laundry machines would fall under which type of budget?

Accepted Answer

Capital Budget

Answer

A Capital Budget is used for significant, long-term investments and assets that have a lifespan of more than one year. New laundry machines are a major purchase and a long-term asset, making them a capital expenditure. An operating budget covers day-to-day expenses like cleaning supplies and salaries.

Question 2

A 200-room hotel aims to maintain a 4-par level for bath towels. Each room is stocked with 4 bath towels. One par is in the rooms, one par is dirty and in the laundry, and two pars are clean and in storage. What is the total number of bath towels the hotel needs in its inventory?

Accepted Answer

3200

Answer

To calculate the total inventory needed, first determine the number of towels for one par: 200 rooms * 4 towels/room = 800 towels per par. Since the hotel maintains a 4-par level, the total inventory is 800 towels/par * 4 par = 3200 towels.

Question 3

Which of the following inventory systems provides a real-time, continuous record of all items in stock, immediately updating with every purchase and issuance?

Accepted Answer

Perpetual Inventory System

Answer

A perpetual inventory system continuously tracks inventory balances, updating records automatically whenever an item is received or used. This provides real-time data. A periodic system, by contrast, updates inventory at the end of a specific period after a physical count.

Question 4

An Executive Housekeeper is analyzing the monthly Profit and Loss statement and notices that the cost of cleaning supplies is 15% over budget, while occupancy was lower than forecasted. This situation is known as a(n):

Accepted Answer

Unfavorable Variance

Answer

An unfavorable variance occurs when actual expenses are higher than the budgeted amount. Since the cost of supplies exceeded the budget, especially during a period of lower-than-expected occupancy, it represents a negative or unfavorable deviation from the financial plan that requires investigation.

Question 5

To effectively control housekeeping expenses, the cost for non-recycled items like guest amenities is often calculated using which key performance indicator?

Accepted Answer

Cost Per Occupied Room (CPOR)

Answer

Cost Per Occupied Room (CPOR) is a standard metric used to track and control variable expenses, such as guest amenities and cleaning supplies. It directly links the consumption of these items to the hotel's actual business volume (occupied rooms), allowing for accurate budgeting and performance measurement.

(CEH) Certified Executive Housekeeper Practice Test

(CEH) Certified Executive Housekeeper Practice Test

CEH - Certified Executive Housekeeper Budgeting and Inventory Control Questions and Answers