CHP Financial Management & Budgeting

Question 1

What is the purpose of a hotel budget?

Accepted Answer

To plan expenses and manage financial goals

Answer

To increase utility bills.

Answer

To hire more staff without review.

Answer

To remove marketing plans.

Question 2

Which document summarizes a hotel’s revenues and expenses?

Accepted Answer

Income statement

Answer

Maintenance log.

Answer

Guest list.

Answer

Employee schedule.

Question 3

Why is cash flow management important?

Accepted Answer

To maintain liquidity and avoid financial shortages

Answer

To skip payments.

Answer

To hide expenses.

Answer

To lower taxes illegally.

Question 4

What does ROI stand for in financial management?

Accepted Answer

Return on Investment

Answer

Rate of Increase.

Answer

Room Occupancy Index.

Answer

Revenue Over Insurance.

Question 5

What is capital expenditure?

Accepted Answer

Investment in long-term assets

Answer

Daily housekeeping costs.

Answer

Wages for hourly staff.

Answer

Utility bills.

Question 6

Which financial metric indicates hotel profitability?

Accepted Answer

GOP (Gross Operating Profit)

Answer

Square footage.

Answer

Employee count.

Answer

Laundry load volume.

Question 7

What is a forecast in hospitality finance?

Accepted Answer

Prediction of financial trends and performance

Answer

Actual results only.

Answer

Customer reviews.

Answer

List of hotel rules.

Question 8

Why is cost control necessary in hotel management?

Accepted Answer

To minimize financial waste and optimize spending

Answer

To overstock supplies.

Answer

To reduce service quality.

Answer

To increase staff workload.

Question 9

What is a fixed cost in hospitality?

Accepted Answer

Costs that remain stable like rent and insurance

Answer

Laundry detergent.

Answer

Hourly wages.

Answer

Meal plan pricing.