CEH Budgeting and Inventory Control 2

Question 1

Which budgeting method requires every expense to be justified from zero each budget period?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Rolling budget

Answer

Capital budgeting

Question 2

A hotel's housekeeping department spends $12,000 on linens annually. If the property has 200 rooms, what is the annual linen cost per room?

Accepted Answer

$60

Answer

$50

Answer

$70

Answer

$80

Question 3

What does the term 'par stock' refer to in housekeeping inventory management?

Accepted Answer

The minimum quantity needed to meet operational needs between deliveries

Answer

The maximum stock level before ordering stops

Answer

The amount discarded due to wear and tear

Answer

The stock held in off-site storage

Question 4

Which cost is BEST classified as a fixed cost in a housekeeping department budget?

Accepted Answer

Department supervisor salary

Answer

Guest amenity supplies

Answer

Overtime labor

Answer

Cleaning chemical usage

Question 5

An executive housekeeper notices actual supply costs are 15% above budget. What is the FIRST step to take?

Accepted Answer

Analyze the variance to identify the root cause

Answer

Immediately cut all supply orders

Answer

Request an emergency budget increase

Answer

Switch to a cheaper supplier without review

Question 6

What is the purpose of conducting a physical inventory count in housekeeping?

Accepted Answer

To verify actual stock levels against recorded quantities

Answer

To determine housekeeping staff schedules

Answer

To calculate guest satisfaction scores

Answer

To assess linen quality for disposal

Question 7

Which formula is used to calculate the inventory turnover rate for housekeeping supplies?

Accepted Answer

Cost of goods sold ÷ Average inventory

Answer

Ending inventory ÷ Cost of goods sold

Answer

Total purchases ÷ Ending inventory

Answer

Average inventory × Total purchases