Financial Management Flashcards
7 cards from real CHP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Management flashcards as text
A hotel's fixed costs total $200,000 per month and variable costs are $40 per occupied room. If ADR is $120, what is the break-even number of rooms per month?
Answer: 2,500 rooms
Contribution margin = $120 – $40 = $80; break-even = $200,000 ÷ $80 = 2,500 rooms.
On the Uniform System of Accounts for the Lodging Industry (USALI), the Rooms department schedule would NOT typically include:
Answer: Depreciation on the building
Building depreciation is a non-operating expense found in the property and equipment section, not within the Rooms departmental schedule.
Which internal control procedure best prevents employee theft at the front desk cash drawer?
Answer: Assigning one cashier per shift per drawer
Assigning a single cashier per drawer per shift establishes individual accountability and makes discrepancies easy to trace.
A hotel's accounts receivable turnover ratio decreased significantly this quarter. This most likely indicates:
Answer: Slower collection or more lenient credit terms
A declining accounts receivable turnover means it is taking longer to collect outstanding balances, signaling collection issues or relaxed credit policies.
When a restaurant uses the 'prime cost' metric, it combines which two cost categories?
Answer: Cost of goods sold and total labor cost
Prime cost equals cost of goods sold (food + beverage) plus total labor cost, typically the two largest controllable expenses in a restaurant.
A manager notices that actual food costs are 5% above the standard cost percentage. The FIRST step in analyzing this variance should be:
Answer: Investigate potential causes such as theft, waste, or portioning errors
Before taking corrective action, a manager should investigate root causes—waste, spoilage, theft, or improper portioning—to address the actual problem.
In capital budgeting, the 'payback period' method calculates:
Answer: How long it takes to recover the initial investment
The payback period is the time required for cumulative cash inflows from a project to equal the initial capital outlay.