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 supervisor is asked to justify a request for additional part-time staff during the holiday season. The strongest financial justification is:
Answer: Cost of overtime for current staff exceeds the cost of part-time hires
Demonstrating that overtime premium pay exceeds the cost of temporary workers is a direct cost-savings argument that finance teams accept.
When evaluating cleaning chemical contracts, a 'total cost of ownership' analysis would include:
Answer: Purchase price, dilution ratios, storage costs, and disposal/compliance costs
Total cost of ownership captures all costs associated with using a product, not just the sticker price, giving a more accurate comparison between options.
A housekeeping budget is split 65% labor and 35% supplies. If the total budget is $80,000, how much is allocated to labor?
Answer: $52,000
$80,000 × 0.65 = $52,000 allocated to labor.
Which document would a housekeeping manager use to track spending against approved budget line items on a month-by-month basis?
Answer: Monthly profit and loss (P&L) or departmental expense report
A monthly P&L or departmental expense report shows actual spending versus budget for each line item, enabling timely financial control.
A 'zero-based budget' requires housekeeping managers to:
Answer: Justify every expense from zero each budget cycle
Zero-based budgeting requires every line item to be justified anew each period rather than carried forward from the previous budget.
Which metric is used to measure how efficiently a housekeeping department converts labor hours into revenue-generating output?
Answer: Labor cost as a percentage of room revenue
Labor cost as a percentage of room revenue directly links labor spending to the revenue it supports, measuring financial efficiency.
If a housekeeping department underspends its supply budget by $3,200 in Q1, the most appropriate action is to:
Answer: Carry the savings forward and document the favorable variance
Favorable variances should be documented to explain the underspend and inform future budget accuracy, not artificially spent down.