CEH Budgeting and Inventory Control 3

Question 1

What is a 'capital expenditure' in the context of a housekeeping budget?

Accepted Answer

A large purchase of long-term assets such as new laundry equipment

Answer

Capital expenditures are investments in long-term assets like equipment or furniture that provide value over multiple years.

Question 2

A property uses 3 rolls of toilet paper per occupied room per day. With 150 occupied rooms, how many rolls are needed for a 7-day period?

Accepted Answer

3,150

Answer

3 rolls × 150 rooms × 7 days = 3,150 rolls needed for the period.

Question 3

Which inventory method values the most recently purchased items as the first to be used?

Accepted Answer

LIFO (Last In, First Out)

Answer

LIFO assumes the last items purchased are the first used, which can affect inventory valuation during periods of price inflation.

Question 4

What does a 'budget variance report' primarily show a housekeeping executive?

Accepted Answer

Differences between budgeted and actual expenditures

Answer

A variance report compares planned budget amounts to actual spending, highlighting areas over or under budget.

Question 5

Which practice BEST reduces linen losses in a hotel's housekeeping department?

Accepted Answer

Implementing a controlled linen tracking and accountability system

Answer

A formal linen tracking system with documented issuance and return records minimizes losses due to theft, misuse, or misplacement.

(CEH) Certified Executive Housekeeper Practice Test