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
Which forecasting technique uses historical data from the same period in prior years to project future housekeeping costs?
Answer: Time-series analysis
Time-series analysis examines historical patterns over time (seasonality, trends) to forecast future activity and costs.
A housekeeping manager is evaluating outsourcing laundry services. Which financial factor is MOST important to compare?
Answer: Total in-house cost per pound vs. vendor cost per pound
A make-vs.-buy decision hinges on comparing the full loaded in-house cost (labor, utilities, chemicals, equipment) against the outsourced unit cost.
In housekeeping budget planning, 'occupancy-driven costs' are those that:
Answer: Increase or decrease in proportion to the number of rooms occupied
Occupancy-driven costs such as amenities, guest supplies, and room attendant labor scale directly with the number of rooms occupied.
A capital budget request for new vacuum cleaners should include all of the following EXCEPT:
Answer: Daily occupancy forecasts for next week
Capital budget justifications focus on long-term cost, life expectancy, and return on investment — short-term daily forecasts are not relevant.
What is the best use of benchmarking in housekeeping financial management?
Answer: Comparing your department's KPIs against industry standards or peer properties
Benchmarking lets managers identify whether their cost per occupied room, labor productivity, or supply usage is competitive relative to similar properties.
A hotel's housekeeping cost per occupied room is $28. Industry average is $22. Which action is MOST appropriate?
Answer: Audit labor scheduling, supply usage, and processes to find inefficiencies
A significant unfavorable benchmark gap warrants a structured audit to find root causes before taking any corrective action.
Which term describes the practice of setting aside funds each budget period to cover future large equipment replacements?
Answer: Capital reserve or replacement fund
A capital reserve fund accumulates money over time so that major replacements (e.g., washers, dryers, vacuum fleets) can be funded without budget shocks.