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
Which of the following BEST describes a 'blanket purchase order' in housekeeping supply procurement?
Answer: A standing agreement with a vendor to supply goods at a set price over a defined period
A blanket purchase order establishes a long-term supply agreement at negotiated prices, streamlining reorders without new negotiations each time.
When conducting a cost-benefit analysis for new housekeeping equipment, an executive housekeeper should compare:
Answer: The total cost of ownership against the projected labor and efficiency savings
Total cost of ownership—including purchase, maintenance, and operating costs—compared to labor savings provides a complete financial picture for decision-making.
An executive housekeeper notices that the actual number of pounds of laundry processed is 10% below forecast despite normal occupancy. What is the MOST likely explanation?
Answer: Guests are requesting fewer linen changes than anticipated
A lower-than-expected laundry volume at normal occupancy often indicates guests are opting for fewer linen refreshes, commonly through green initiative programs.
In the context of housekeeping budgeting, what is 'encumbrance accounting'?
Answer: Reserving funds in the budget when a purchase order is issued, before the invoice arrives
Encumbrance accounting commits budget funds at the time of purchase order creation, preventing overspending before invoices are received.
Which metric BEST helps an executive housekeeper evaluate staff labor productivity in relation to budget?
Answer: Labor cost per occupied room compared to budgeted labor cost per occupied room
Comparing actual to budgeted labor cost per occupied room normalizes productivity measurement against occupancy, isolating true efficiency.
A hotel switches from a centralized linen storage system to a floor linen closet system. What is the MOST likely impact on inventory requirements?
Answer: Total linen inventory needed increases to stock each floor closet
Distributing linen across multiple floor closets requires higher total quantities to maintain adequate par at each location.
What is the purpose of a 'shrinkage allowance' in a housekeeping linen budget?
Answer: To account for expected losses due to theft, damage, and wear beyond normal lifecycle
A shrinkage allowance anticipates predictable losses from pilferage, damage, and attrition, ensuring the budget realistically reflects total linen costs.