Budgeting and Inventory Control Flashcards
7 cards from real CEH practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Budgeting and Inventory Control flashcards as text
What is the main purpose of a 'petty cash fund' in a housekeeping department?
Answer: To cover small, urgent operational purchases without formal purchase orders
A petty cash fund handles minor, immediate purchases that would be inefficient to process through normal procurement channels.
Which document formally authorizes a housekeeping department to spend money up to a specified amount?
Answer: Approved operating budget
An approved operating budget is the authorizing document that sets spending limits for a department within a fiscal period.
A property wants to track whether its housekeeping productivity is improving year over year. Which metric is MOST relevant?
Answer: Average number of rooms cleaned per labor hour
Rooms cleaned per labor hour is a direct productivity metric that shows efficiency of labor utilization over time.
What risk does a hotel face when operating with inventory levels consistently BELOW par stock?
Answer: Operational disruptions due to stockouts of essential supplies
Below-par inventory levels risk stockouts that can disrupt room cleaning operations, delay check-ins, and reduce guest satisfaction.
When preparing a bid specification for a linen contract, which factor is MOST critical to include for accurate cost comparison?
Answer: Thread count, weight, durability specifications, and expected life cycle
Technical specifications like thread count, weight, and durability determine true value and enable apples-to-apples cost comparisons between bids.
Which statement BEST describes the relationship between occupancy rate and housekeeping labor costs?
Answer: Higher occupancy increases variable labor costs while fixed supervisory costs remain stable
Room attendant hours are a variable labor cost that rises with occupancy, while supervisory salaries remain as fixed costs regardless of occupancy.
An executive housekeeper wants to justify purchasing new commercial washing machines. Which document BEST supports this capital budget request?
Answer: A cost-benefit analysis showing ROI and payback period
A cost-benefit analysis quantifying savings, productivity gains, and return on investment provides the financial justification required for capital expenditure approval.