CEH Budgeting & Inventory Control 4

Question 1

Which of the following BEST describes a 'blanket purchase order' in housekeeping supply procurement?

Accepted Answer

A standing agreement with a vendor to supply goods at a set price over a defined period

Answer

A blanket purchase order establishes a long-term supply agreement at negotiated prices, streamlining reorders without new negotiations each time.

Question 2

When conducting a cost-benefit analysis for new housekeeping equipment, an executive housekeeper should compare:

Accepted Answer

The total cost of ownership against the projected labor and efficiency savings

Answer

Total cost of ownership—including purchase, maintenance, and operating costs—compared to labor savings provides a complete financial picture for decision-making.

Question 3

An executive housekeeper notices that the actual number of pounds of laundry processed is 10% below forecast despite normal occupancy. What is the MOST likely explanation?

Accepted Answer

Guests are requesting fewer linen changes than anticipated

Answer

A lower-than-expected laundry volume at normal occupancy often indicates guests are opting for fewer linen refreshes, commonly through green initiative programs.

Question 4

In the context of housekeeping budgeting, what is 'encumbrance accounting'?

Accepted Answer

Reserving funds in the budget when a purchase order is issued, before the invoice arrives

Answer

Encumbrance accounting commits budget funds at the time of purchase order creation, preventing overspending before invoices are received.

Question 5

Which metric BEST helps an executive housekeeper evaluate staff labor productivity in relation to budget?

Accepted Answer

Labor cost per occupied room compared to budgeted labor cost per occupied room

Answer

Comparing actual to budgeted labor cost per occupied room normalizes productivity measurement against occupancy, isolating true efficiency.

(CEH) Certified Executive Housekeeper Practice Test

(CEH) Certified Executive Housekeeper Practice Test

CEH Budgeting & Inventory Control 4