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Budgeting & 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 & Inventory Control flashcards as text
  1. An executive housekeeper wants to reduce linen replacement costs. Which strategy BEST addresses this goal without reducing service quality?

    Answer: Implement a strict loss and damage tracking system

    Tracking loss and damage identifies waste sources and accountability gaps, directly reducing unnecessary replacement costs.

  2. What is the purpose of a physical inventory count in housekeeping?

    Answer: To reconcile actual stock levels against recorded quantities and identify discrepancies

    Physical inventory counts verify that actual quantities match records, revealing shrinkage, miscounts, or recording errors.

  3. A housekeeping budget includes a line item for 'capital expenditures.' Which of the following BEST fits this category?

    Answer: Replacement of all vacuum cleaners fleet-wide

    Capital expenditures are major purchases of equipment or assets with long useful lives, such as replacing an entire fleet of vacuums.

  4. Which formula correctly calculates the inventory turnover rate for housekeeping supplies?

    Answer: Cost of supplies used ÷ average inventory value

    Inventory turnover = cost of supplies used ÷ average inventory value, indicating how quickly stock is consumed and replaced.

  5. During budget preparation, an executive housekeeper should reference historical occupancy data primarily to:

    Answer: Forecast variable supply and labor costs based on expected demand

    Historical occupancy data allows accurate forecasting of variable costs like supplies and staffing that fluctuate with guest volume.

  6. What is the primary risk of maintaining inventory levels that are too LOW in a housekeeping operation?

    Answer: Stockouts that disrupt service and guest satisfaction

    Insufficient inventory levels lead to stockouts, which can halt operations and directly harm guest satisfaction and service delivery.

  7. A purchasing variance report shows that actual spending on amenities was $2,400 versus a budget of $2,000 for the month. What is the percentage variance?

    Answer: 20% unfavorable

    Variance % = (actual − budget) ÷ budget × 100 = ($2,400 − $2,000) ÷ $2,000 × 100 = 20% unfavorable.