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

Zero-based budgeting starts from zero and requires justification for every line item rather than basing it on prior-year spending.

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

$12,000 divided by 200 rooms equals $60 per room annually.

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

Par stock is the standard quantity of items needed to support daily operations until the next scheduled delivery.

Question 4

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

Accepted Answer

Department supervisor salary

Answer

A supervisor's salary remains constant regardless of occupancy levels, making it a fixed cost.

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

Variance analysis identifies whether the overage is due to price increases, waste, theft, or inaccurate forecasting before corrective action is taken.

(CEH) Certified Executive Housekeeper Practice Test

(CEH) Certified Executive Housekeeper Practice Test

CEH Budgeting and Inventory Control 2