CEH Budgeting and Inventory Control 5

Question 1

What is the main purpose of a 'petty cash fund' in a housekeeping department?

Accepted Answer

To cover small, urgent operational purchases without formal purchase orders

Answer

A petty cash fund handles minor, immediate purchases that would be inefficient to process through normal procurement channels.

Question 2

Which document formally authorizes a housekeeping department to spend money up to a specified amount?

Accepted Answer

Approved operating budget

Answer

An approved operating budget is the authorizing document that sets spending limits for a department within a fiscal period.

Question 3

A property wants to track whether its housekeeping productivity is improving year over year. Which metric is MOST relevant?

Accepted Answer

Average number of rooms cleaned per labor hour

Answer

Rooms cleaned per labor hour is a direct productivity metric that shows efficiency of labor utilization over time.

Question 4

What risk does a hotel face when operating with inventory levels consistently BELOW par stock?

Accepted Answer

Operational disruptions due to stockouts of essential supplies

Answer

Below-par inventory levels risk stockouts that can disrupt room cleaning operations, delay check-ins, and reduce guest satisfaction.

Question 5

When preparing a bid specification for a linen contract, which factor is MOST critical to include for accurate cost comparison?

Accepted Answer

Thread count, weight, durability specifications, and expected life cycle

Answer

Technical specifications like thread count, weight, and durability determine true value and enable apples-to-apples cost comparisons between bids.

(CEH) Certified Executive Housekeeper Practice Test