Financial Planning & Budgeting 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 Planning & Budgeting flashcards as text
A housekeeping manager notices chemical supply costs increased 18% over the prior quarter. What is the FIRST step in addressing this variance?
Answer: Analyze usage logs to identify waste or theft
Analyzing usage logs identifies whether the increase stems from waste, theft, price hikes, or increased workload before taking corrective action.
Which budgeting method allocates funds based on the previous year's budget plus an incremental percentage?
Answer: Incremental budgeting
Incremental budgeting starts from the prior period's figures and adjusts by a set percentage up or down.
A hotel's housekeeping department has a fixed budget of $12,000/month. Occupancy rises 30% above forecast. What should the manager do?
Answer: Request a budget amendment to reflect actual occupancy
A budget amendment is appropriate when a significant unforeseen change in occupancy creates legitimate additional costs.
What does the term 'rooms cleaned per labor hour' measure in housekeeping financial management?
Answer: Labor productivity ratio
Rooms cleaned per labor hour is a key productivity metric used to evaluate staffing efficiency and control labor costs.
When preparing a housekeeping budget, par stock levels for linens are used to calculate:
Answer: Inventory replenishment costs
Par stock levels define the quantity of linens needed to operate, which directly determines how much inventory must be purchased and maintained.
A cost-benefit analysis for purchasing a new floor-scrubbing machine shows a payback period of 14 months. What does this mean?
Answer: The savings generated will recover the purchase cost in 14 months
Payback period is the time required for cumulative savings or benefits to equal the initial investment cost.
Which expense category would a housekeeping department classify carpet shampooing equipment rental under?
Answer: Contract services expense
Renting equipment from an outside vendor is classified as a contract or outside services expense, not a capital or supply cost.