CHP Financial Planning & Budgeting 3

Question 1

A housekeeping director wants to reduce linen replacement costs by 15%. Which strategy directly targets linen loss?

Accepted Answer

Implementing linen tracking with barcodes or RFID

Answer

RFID or barcode tracking reduces loss and theft by enabling accurate accounting of every linen item through the laundry cycle.

Question 2

Which of the following best describes a 'flexible budget' in a housekeeping context?

Accepted Answer

A budget that adjusts to actual occupancy or production levels

Answer

A flexible budget recalculates allowable expenses based on actual activity levels, making it more accurate than a static budget.

Question 3

Room attendant overtime pay is best classified as which type of cost?

Accepted Answer

Semi-variable cost

Answer

Labor costs have a fixed base (minimum staffing) and a variable component (overtime), making them semi-variable or mixed costs.

Question 4

When a housekeeping budget shows an 'unfavorable variance,' this means:

Accepted Answer

Actual costs exceeded the budgeted amount

Answer

An unfavorable variance indicates that actual spending exceeded what was budgeted, requiring investigation and corrective action.

Question 5

A property spends $4.50 per occupied room on guest amenities. At 80% occupancy with 200 rooms, what is the daily amenity cost?

Accepted Answer

$720

Answer

200 rooms × 80% occupancy = 160 occupied rooms; 160 × $4.50 = $720 daily amenity cost.

(CHP) Certified Housekeeping Professional Practice Test