CHIA CHIA Financial Analysis & Hotel Accounting 2 — Questions and Answers
Question 1: TRevPAR measures which of the following?
- Total revenue from food and beverage only
- Total revenue per available room across all hotel departments (Correct answer)
- The top revenue-generating rate tier
- Total revenue per available room from rooms only
Correct 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.
Question 2: Fixed costs in hotel operations are best described as:
- Costs that vary directly with occupancy levels
- Costs related only to food and beverage purchasing
- Costs that remain constant regardless of occupancy (Correct answer)
- Costs associated with variable daily staffing
Correct 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.
Question 3: What is a hotel's 'contribution margin'?
- Total revenue minus all fixed costs
- Revenue minus variable costs (Correct answer)
- GOP divided by total rooms available
- The percentage of rooms donated to community programs
Correct 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.
Question 4: Cost Per Occupied Room (CPOR) is primarily used to:
- Calculate recommended room rates
- Track loyalty program redemption costs
- Measure guest satisfaction scores
- Analyze the expense efficiency of running occupied rooms (Correct answer)
Correct 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.
Question 5: Labor cost percentage in hotel financial reporting measures:
- Annual payroll growth rate
- The ratio of management staff to line employees
- Labor expenses as a percentage of total revenue (Correct answer)
- The number of labor hours per occupied room
Correct 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.
Question 6: Which budget type compares actual performance results to prior projections on an ongoing basis?
- Zero-based budget
- Capital expenditure budget
- Operating budget vs. actual (variance) report (Correct answer)
- Departmental allocation budget
Correct 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.
CHIA CHIA Financial Analysis & Hotel Accounting 2
TRevPAR measures which of the following?