CEH Budgeting and Inventory Control 4

Question 1

What is the purpose of an 'occupancy-based budget' in housekeeping?

Accepted Answer

To adjust budgeted costs in line with actual or projected occupancy rates

Answer

An occupancy-based budget flexes variable costs—like supplies and labor—based on the number of occupied rooms, providing more accurate financial planning.

Question 2

Which of the following is an example of a variable cost in housekeeping?

Accepted Answer

Cleaning supplies used per occupied room

Answer

Cleaning supplies consumed per occupied room change directly with occupancy levels, making them a variable cost.

Question 3

A hotel replaces its entire linen inventory every 18 months at a cost of $45,000. What is the approximate monthly linen depreciation cost?

Accepted Answer

$2,500

Answer

$45,000 ÷ 18 months = $2,500 per month in linen depreciation.

Question 4

When issuing supplies from a central storeroom, which system ensures older stock is used before newer stock?

Accepted Answer

FIFO rotation

Answer

FIFO (First In, First Out) rotation ensures older inventory is issued first, preventing product expiration and degradation.

Question 5

What is 'cost per occupied room' (CPOR) used to measure in housekeeping?

Accepted Answer

The total housekeeping expense divided by the number of rooms occupied

Answer

CPOR measures how much the housekeeping department spends per occupied room and is a key benchmark for cost efficiency.

(CEH) Certified Executive Housekeeper Practice Test

(CEH) Certified Executive Housekeeper Practice Test

CEH Budgeting and Inventory Control 4