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69 Cards in this Set

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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:

$4000 unfavorable

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

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

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?


Seasonal Pattern

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:
$25 unfavorable


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?



$395.25 unfavorable

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


To inform the owner/manager of the company goals

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


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.

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


Index values for Occupancy, ADR and RevPAR

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:


$300 unfavorable


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


-4.9

The operations budget reflects:


revenues and expenses.

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?


Trend Pattern

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


Naive

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


Operations budget

What type of budget pertains to cash receipts and disbursements?


Cash Budget

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?



$2,200

Which of the following does not cause labor expense variances?

Changes in product costs

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


the dependent variable

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

6.7% unfavorable

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?


143

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


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

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?


Your hotel will have a positive RevPAR Index Percent Change

Which is correct about the timing of STR reports?


Weekly reports are generated on Tuesday

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?


2,635 hours

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


Staffing

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?


2,635 hours

The operations budget reflects:


revenues and expenses

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


4 of 6

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?


$585 unfavorable

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


the forecasting methods used by competitors

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


All are limitations

Which of the following is a qualitative forecasting method?


Market Research

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?


$27,500

Which is not a causal approach to forecasting?


Exponential smoothing

Flexible budgeting is most useful when:


planning for different levels of operations.

Which of the following does not cause labor expense variances?


Changes in product costs

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:


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

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


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

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


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

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


Volume

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


False

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:


$450 unfavorable

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:

$3,000 favorable

Which is not correct about the timing of STR reports?



Monthly reports are generated around the15th


Weekly reports are generated on Monday


Daily reports are generated by 9am the following day


All are incorrect

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


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

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


Capital Budgeting

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?


$625 favorable

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:


$6,500 unfavorable

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

10.0% favorable

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


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

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


To inform the owner/manager of the company goals

What information is never included on a STAR report?


Performance data for individual competitors

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?


Jury of Executive Opinion

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?


$2.25 unfavorable


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



Determination of variances


Determination of significant variances


Analysis of variances


Determination of problems


Action to correct problems

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


They are normally generated in Excel

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


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

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?


Sales Force estimates

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


Index values for Occupancy, ADR and RevPAR

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?


$22,500

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


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

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


Approving the final operating budget

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:


$500 unfavorable

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


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 budget variance for the week was:


$775 unfavorable

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?


Delphi Method

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?


$812.50 unfavorable

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?


17,890

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


Your hotel’s profit for the month