CHP Financial Management & Budgeting 3

Question 1

Which of the following is classified as a fixed cost in hotel operations?

Accepted Answer

Property insurance premiums

Answer

Property insurance premiums remain constant regardless of occupancy level, making them a fixed cost.

Question 2

A budget variance analysis shows actual spending was $12,000 versus a budgeted $10,000. This is best described as a:

Accepted Answer

Unfavorable variance of $2,000

Answer

When actual costs exceed budgeted costs, the variance is unfavorable (adverse) because more was spent than planned.

Question 3

In the Uniform System of Accounts for the Lodging Industry (USALI), which department is typically listed first?

Accepted Answer

Rooms

Answer

Under USALI, the Rooms department is listed first as it is typically the largest revenue-generating department.

Question 4

EBITDA stands for earnings before interest, taxes, depreciation, and:

Accepted Answer

Amortization

Answer

EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization — a common measure of operating performance.

Question 5

A hotel manager uses the '52/48 rule' for labor scheduling. This primarily helps control:

Accepted Answer

Overtime expenses

Answer

The 52/48 scheduling rule staggers shifts to minimize overtime by ensuring 52 hours of coverage with 48-hour employee schedules.

(CHP) Certified Hospitality Professional Practice Test