CHIA Financial Analysis & Hotel Accounting Flashcards
6 cards from real CHIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CHIA Financial Analysis & Hotel Accounting flashcards as text
TRevPAR measures which of the following?
Answer: Total revenue per available room across all hotel departments
TRevPAR (Total Revenue Per Available Room) captures all revenue streams—rooms, F&B, spa, parking—per available room.
Fixed costs in hotel operations are best described as:
Answer: Costs that remain constant regardless of occupancy
Fixed costs such as insurance, property taxes, and management fees do not change with the number of occupied rooms.
What is a hotel's 'contribution margin'?
Answer: Revenue minus variable costs
Contribution margin is revenue minus variable costs, revealing how much each unit of revenue contributes to covering fixed costs and profit.
Cost Per Occupied Room (CPOR) is primarily used to:
Answer: Analyze the expense efficiency of running occupied rooms
CPOR divides total rooms department expenses by occupied rooms, revealing how efficiently the hotel manages room-level costs.
Labor cost percentage in hotel financial reporting measures:
Answer: Labor expenses as a percentage of total revenue
Labor cost percentage = total labor expenses ÷ total revenue × 100, and is one of the most closely watched efficiency ratios in hospitality.
Which budget type compares actual performance results to prior projections on an ongoing basis?
Answer: Operating budget vs. actual (variance) report
An operating budget vs. actual variance report allows management to identify where performance deviated from plan and take corrective action.