CTP CTP Financial Management & Pricing

Question 1

What is 'break-even analysis' used for in tour operations?

Accepted Answer

Calculating the minimum number of passengers or revenue needed to cover all costs

Answer

Determining the profit margin on each tour sold

Answer

Analyzing competitor pricing structures

Answer

Setting refund policies for cancellations

Question 2

Which of the following is a 'fixed cost' for a tour operator?

Accepted Answer

Office rent paid monthly regardless of tour volume

Answer

Fuel costs that vary with tour frequency

Answer

Commission paid to travel agents per booking

Answer

Catering costs per passenger

Question 3

What is a 'variable cost' in tour pricing?

Accepted Answer

A cost that changes based on the number of tours operated or passengers carried

Answer

An unpredictable overhead expense

Answer

The annual license fee for operating tours

Answer

A fixed monthly expense like insurance

Question 4

A tour operator calculates a cost of $80 per person and wants a 25% profit margin. What should the selling price be?

Accepted Answer

$106.67

Answer

$100

Answer

$105

Answer

$120

Question 5

What does 'cash flow' mean in tour business management?

Accepted Answer

The movement of money in and out of the business over a period of time

Answer

The total annual revenue of the business

Answer

The ratio of bookings to cancellations

Answer

The amount of cash held in reserve for emergencies

Question 6

Which financial document summarizes a company's revenues, costs, and profits over a specific period?

Accepted Answer

Income statement (Profit & Loss statement)

Answer

Balance sheet

Answer

Cash flow statement

Answer

Accounts receivable ledger