Tca 321 Quiz 2

Front 1

For the first week of May, the Carlisle Club budgeted for600 room nights at an average room rate of $65. Actual room nights for the weektotaled 500 with an average room rate of $70. The budget variance for the weekwas:

Back 1

$4000 unfavorable

Front 2

Based on the in class STR Example, Amanda's Luxury Resort Hotel, which is correct?

Back 2

For Year to Date, my company and my comp set have the same best day of the week for Occupancy %

Front 3

Ruben, the new general manager at the Roadside Inn, reviewed a computer-generated graph of occupancy data for each month over the past five years. Which of the following types of patterns would Ruben find if the graph showed fluctuations in business that were consistent from year to year according to the time of year?

Back 3

Seasonal Pattern

Front 4

For the first week of April, the Satin Table Restaurant budgeted 900 covers at a cost per cover of $6. Actual covers for the week were 950 at a cost per cover of $6.50. The cost-volume variance for the week was:

Back 4

$25 unfavorable

Front 5

A hotel has 1,000 rooms and the front desk manager projected that they would sell an average of 850 rooms per night for March. The budget standard for front desk clerks is 10 check ins per hour at an hourly rate of $12.50 per hour. During the month of March, front desk clerks actually checked in 27,000 rooms, worked 2,650 hours and were paid $12.65 per hour. What is the rate variance for front desk clerks?

Back 5

$395.25 unfavorable

Front 6

Which is not a valid reason for having a formalized budgeting plan?

Back 6

To inform the owner/manager of the company goals

Front 7

Which of the following statements about forecasting methods used in hospitality operations is false?

Back 7

The two most important factors in selecting a forecasting method for a hospitality operation are the size and complexity of the operation and the skill of staff in forecasting.

Front 8

The line graph at the top of the Competitive Set Report in a monthly STAR report shows what?

Back 8

Index values for Occupancy, ADR and RevPAR

Front 9

For the first week of April, the Satin Table Restaurant budgeted 900 covers at a cost per cover of $6. Actual covers for the week were 950 at a cost per cover of $6.50. The volume variance for the week was:

Back 9

$300 unfavorable

Front 10

Based on the in class STR Example, Amanda's Luxury Resort Hotel, what was the company's year-to-date Occupancy % change?

Back 10

-4.9

Front 11

The operations budget reflects:

Back 11

revenues and expenses.

Front 12

Susan, the new director of sales at the Downtown Convention Hotel, reviewed a computer-generated graph of group sales for the month of August over the past five years. Which of the following types of patterns would Susan find if the graph showed a steady increase in sales?

Back 12

Trend Pattern

Front 13

What is the simplest forecasting method as discussed in class and in the book?

Back 13

Naive

Front 14

Which of the following managerial tools projects the number of rooms to be sold at an expected average room rate for a given period?

Back 14

Operations budget

Front 15

What type of budget pertains to cash receipts and disbursements?

Back 15

Cash Budget

Front 16

The Lunch Depot uses a three-week moving average time series approach to forecast lunch sales. If sales for the past three weeks were $2,200, $2,400, and $2,000, what would the sales forecast be for the upcoming week?

Back 16

$2,200

Front 17

Which of the following does not cause labor expense variances?

Back 17

Changes in product costs

Front 18

In a regression equation (y=a+bx), what is the y an indicator of?

Back 18

the dependent variable

Front 19

The company budgeted revenue of $150,000 during June when $140,000 was actually generated. The percentage variance for the period was:

Back 19

6.7% unfavorable

Front 20

Based on the in class STR Example, Amanda's Luxury Resort Hotel, how many hotel rooms are going to enter the market in the future?

Back 20

143

Front 21

When you receive your STAR report, your ADR for the month was $200 and the competitive set ADR was $190. What can you tell?

Back 21

Your ADR was $10 higher than the average of all of the members of the competitive set

Front 22

When you receive your STAR report, you see that your RevPAR index was 90 this year compared to 80 last year. What do you know for sure?

Back 22

Your hotel will have a positive RevPAR Index Percent Change

Front 23

Which is correct about the timing of STR reports?

Back 23

Weekly reports are generated on Tuesday

Front 24

A hotel has 1,000 rooms and the front desk manager projected that they would sell an average of 850 rooms per night for March. The budget standard is 10 check ins per hour at an hourly rate of $12.50 per hour. How many hours should the manager budget for the month of March?

Back 24

2,635 hours

Front 25

What is the main purpose of doing a short-term forecast?

Back 25

Staffing

Front 26

A hotel has 1,000 rooms and the front desk manager projected that they would sell an average of 850 rooms per night for March. The budget standard is 10 check ins per hour at an hourly rate of $12.50 per hour. How many hours should the manager budget for the month of March?

Back 26

2,635 hours

Front 27

The operations budget reflects:

Back 27

revenues and expenses

Front 28

Based on the in class STR Example, Amanda's Luxury Resort Hotel, how did your company rank in Occupancy % for December 2012?

Back 28

4 of 6

Front 29

A hotel has 1,000 rooms and the front desk manager projected that they would sell an average of 850 rooms per night for March. The budget standard for front desk clerks is 10 check ins per hour at an hourly rate of $12.50 per hour. During the month of March, front desk clerks actually checked in 27,000 rooms, worked 2,650 hours and were paid $12.65 per hour. What is the labor budget variance for front desk clerks?

Back 29

$585 unfavorable

Front 30

Which of the following is not a relevant factor in the selection of a forecasting method for a hospitality operation?

Back 30

the forecasting methods used by competitors

Front 31

Which is not a limitation of using quantitative methods only for forecasting?

Back 31

All are limitations

Front 32

Which of the following is a qualitative forecasting method?

Back 32

Market Research

Front 33

Your company uses the naive method to forecast. If your sales last April were $25,000 and you anticipate a 10% increase this year what would your forecast be?

Back 33

$27,500

Front 34

Which is not a causal approach to forecasting?

Back 34

Exponential smoothing

Front 35

Flexible budgeting is most useful when:

Back 35

planning for different levels of operations.

Front 36

Which of the following does not cause labor expense variances?

Back 36

Changes in product costs

Front 37

Jerome, the catering manager at the City Center Hotel, uses a time series approach to forecasting sales and scheduling staff. In order to take seasonality of business into account, Jerome should:

Back 37

use data from the same period in the previous year as a base figure.

Front 38

Which of the following statements about forecasting in hospitality operations is true?

Back 38

The more removed the forecast period is from the date the forecast is made, the greater the difficulty in making the forecast.

Front 39

When you receive your STAR report you see that your ADR Rank for the current month is “3 of 7”. What do you know?

Back 39

Your hotel has the 3rd highest ADR among the members of your competitive set

Front 40

When conducting a labor variance analysis, which variance is typically out of management's control?

Back 40

Volume

Front 41

A time series approach to forecasting assumes that the value of a certain variable is a function of another variable.

Back 41

False

Front 42

For the first week of April, the Satin Table Restaurant budgeted 900 covers at a cost per cover of $6. Actual covers for the week were 950 at a cost per cover of $6.50. The cost variance for the week was:

Back 42

$450 unfavorable

Front 43

For the first week of May, the Carlisle Club budgeted for 600 room nights at an average room rate of $65. Actual room nights for the week totaled 500 with an average room rate of $70. The price variance for the week was:

Back 43

$3,000 favorable

Front 44

Which is not correct about the timing of STR reports?

Back 44

Monthly reports are generated around the15th

Weekly reports are generated on Monday

Daily reports are generated by 9am the following day

All are incorrect

Front 45

Based on the in class STR Example, Amanda's Luxury Resort Hotel, which is correct?

Back 45

My company has the lowest Occupancy % and RevPAR of all competitors for the average of the last 3 months

Front 46

What type of budget is management's plans for the acquisition of long term assets such as equipment, land, budilding, etc?

Back 46

Capital Budgeting

Front 47

A hotel has 1,000 rooms and the front desk manager projected that they would sell an average of 850 rooms per night for March. The budget standard for front desk clerks is 10 check ins per hour at an hourly rate of $12.50 per hour. During the month of March, front desk clerks actually checked in 27,000 rooms, worked 2,650 hours and were paid $12.65 per hour. What is the efficiency variance for front desk clerks?

Back 47

$625 favorable

Front 48

For the first week of May, the Carlisle Club budgeted for 600 room nights at an average room rate of $65. Actual room nights for the week totaled 500 with an average room rate of $70. The volume variance for the week was:

Back 48

$6,500 unfavorable

Front 49

The food and beverage operating supplies expense was $18,000 for the month against a budget of $20,000. The budget variance was:

Back 49

10.0% favorable

Front 50

Which is not a competitor that appears on the monthly STAR report?

Back 50

A grouping of hotels STR picks for you based on criteria you give them

Front 51

Which is not a valid reason for having a formalized budgeting plan?

Back 51

To inform the owner/manager of the company goals

Front 52

What information is never included on a STAR report?

Back 52

Performance data for individual competitors

Front 53

Corporate executives at a nationwide restaurant chain wanted to refine their regional sales forecasts for the upcoming year. They invited key employees from the various regions to a three-day planning session focusing on economic conditions, menu changes, and other factors that could affect future sales. Which of the following forecasting methods did the corporate management team use?

Back 53

Jury of Executive Opinion

Front 54

A hotel has 1,000 rooms and the front desk manager projected that they would sell an average of 850 rooms per night for March. The budget standard for front desk clerks is 10 check ins per hour at an hourly rate of $12.50 per hour. During the month of March, front desk clerks actually checked in 27,000 rooms, worked 2,650 hours and were paid $12.65 per hour. What is the rate-time variance for front desk clerks?

Back 54

$2.25 unfavorable

Front 55

In what order does the budgeting control process occur?

If this is on the exam it will be stated as multiple choice with you selecting the first or last step out of the ones given to you, but if you can order them right you can answer that

Back 55

Determination of variances

Determination of significant variances

Analysis of variances

Determination of problems

Action to correct problems

Front 56

Which statement is true regarding the format and timing of a STAR Report?

Back 56

They are normally generated in Excel

Front 57

Based on the in class STR Example, Amanda's Luxury Resort Hotel, how did you company fair compared to all industry segments?

Back 57

My company's RevPAR is doing worse compared to last year than all industry segments except the comp set for all time periods

Front 58

Management at a local restaurant in a college town wanted to refine their sales forecasts for the upcoming month. They asked hostess and servers their estimation of how many people would visit their restaurant based on how busy they normally are and any university events that may occur in the next month. Which of the following forecasting methods did the management team use?

Back 58

Sales Force estimates

Front 59

The line graph at the top of the Competitive Set Report in a monthly STAR report shows what?

Back 59

Index values for Occupancy, ADR and RevPAR

Front 60

Your company uses the naive method to forecast. If your sales last April were $25,000 and you anticipate a 10% decrease this year what would your forecast be?

Back 60

$22,500

Front 61

The best reason for including department heads in the operations budgeting process is that:

Back 61

the department heads will generally be more motivated if they are involved in preparing the budget.

Front 62

Which of the following is usually not the controller’s responsibility in preparing the operations budget?

Back 62

Approving the final operating budget

Front 63

For the first week of May, the Carlisle Club budgeted for 600 room nights at an average room rate of $65. Actual room nights for the week totaled 500 with an average room rate of $70. The price-volume variance for the week was:

Back 63

$500 unfavorable

Front 64

What is the minimum number of properties for a comp set, including your property?

Back 64

4

Front 65

For the first week of April, the Satin Table Restaurant budgeted 900 covers at a cost per cover of $6. Actual covers for the week were 950 at a cost per cover of $6.50. The budget variance for the week was:

Back 65

$775 unfavorable

Front 66

Corporate executives at a nationwide hotel chain wanted to refine their regional sales forecasts for the upcoming year. They retrieved opinions from hotel experts such as Smith Travel Research and the US Travel Association on the future of the hotel industry in the coming year. Which of the following forecasting methods did the corporate management team use?

Back 66

Delphi Method

Front 67

A hotel has 1,000 rooms and the front desk manager projected that they would sell an average of 850 rooms per night for March. The budget standard for front desk clerks is 10 check ins per hour at an hourly rate of $12.50 per hour. During the month of March, front desk clerks actually checked in 27,000 rooms, worked 2,650 hours and were paid $12.65 per hour. What is the volume variance for front desk clerks?

Back 67

$812.50 unfavorable

Front 68

Your company uses the following model to forecast breakfast meals in your hotel restaurant.

Total breakfast covers = 250+.7(number of hotel guest)

Your hotel has 750 rooms and your anticipated occupancy for June is 80%. If you forecast 1.4 guests per room, how many breakfast meals do you anticipate selling in June?

Back 68

17,890

Front 69

Which of the following does the Monthly STAR Report not show?

Back 69

Your hotel’s profit for the month