CHP Financial Management 2

Question 1

A hotel's GOP (Gross Operating Profit) is calculated by subtracting which expenses from total revenue?

Accepted Answer

Departmental expenses plus undistributed operating expenses

Answer

Departmental expenses only

Answer

Only fixed costs

Answer

Net income taxes and depreciation

Question 2

Which financial ratio best measures a hotel's ability to pay short-term obligations?

Accepted Answer

Current ratio

Answer

Debt-to-equity ratio

Answer

Return on assets

Answer

Occupancy percentage

Question 3

A restaurant forecasts $50,000 in food sales and a 32% food cost. What is the projected food cost in dollars?

Accepted Answer

$16,000

Answer

$14,000

Answer

$18,000

Answer

$20,000

Question 4

In hospitality accounting, 'RevPAR' stands for:

Accepted Answer

Revenue Per Available Room

Answer

Revenue Per Actual Rate

Answer

Rate Per Available Room

Answer

Revenue Percentage Above Rate

Question 5

A hotel purchases $8,000 in supplies but only $5,500 worth is used during the accounting period. What is recorded as an expense?

Accepted Answer

$5,500

Answer

$8,000

Answer

$2,500

Answer

$13,500

Question 6

Which budgeting approach requires managers to justify every expense from zero each period rather than using prior-year figures as a baseline?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Rolling budget

Answer

Flexible budgeting

Question 7

What does the term 'yield management' primarily aim to maximize in a hotel?

Accepted Answer

Revenue from available room inventory

Answer

Guest satisfaction scores

Answer

Food and beverage profit margins

Answer

Employee productivity