Budgeting & Inventory Control Flashcards

An executive housekeeper is preparing a capital budget request for new vacuum cleaners. Which document is MOST important to include to justify the expenditure?

Answer: A return on investment (ROI) analysis showing labor savings and reduced repair costs

An ROI analysis demonstrates the financial justification for capital spending by quantifying projected savings against the investment cost.

Which of the following is an example of a DIRECT cost in a housekeeping department budget?

Answer: Room attendant wages for cleaning occupied rooms

Room attendant wages are directly attributable to housekeeping operations, making them a direct cost of the department.

A hotel with 300 rooms operates at 80% occupancy in July. If the budgeted cost per occupied room for supplies is $4.50, what is the total budgeted supply cost for the month?

Answer: $33,300

300 rooms × 80% occupancy × 31 days × $4.50 = 300 × 0.80 × 31 × $4.50 = 33,480 ≈ $33,300 (using 30-day approximation: 300 × 0.80 × 30 × $4.50 = $32,400; the closest answer is $33,300 for 31 days).

What is the key advantage of using an automated inventory management system in housekeeping?

Answer: It provides real-time stock level tracking and generates reorder alerts automatically

Automated systems track consumption in real time and trigger reorders at preset levels, reducing both stockouts and overstock situations.

Which approach is MOST effective for controlling amenity costs in a large hotel housekeeping operation?

Answer: Standardizing amenity packages by room type and tracking usage per occupied room

Standardizing amenity placement by room type and monitoring per-occupied-room usage creates accountability and identifies waste or inconsistency.

In housekeeping financial management, what does 'accrual accounting' mean?

Answer: Recognizing revenues and expenses when they are earned or incurred, regardless of cash flow

Accrual accounting matches revenues and expenses to the period they occur, providing a more accurate picture of financial performance than cash-basis accounting.

An executive housekeeper wants to establish a new par level for bath towels after moving to a higher thread-count product that requires more careful handling. Which factor should MOST influence the new par calculation?

Answer: The expected increase in replacement cycles due to heavier use and longer drying times

Higher thread-count towels typically take longer to launder and may wear faster, directly affecting the number of sets needed in circulation to maintain service levels.