Questions from Managerial Accounting

Q: 1. If a hospitality operation’s sales are too low, total

1. If a hospitality operation’s sales are too low, total revenue A. may be insufficient to cover fixed and variable costs. B. will cover fixed, but not variable costs. C. will cover variable, but not...

Q: Andrea Wasserman knows her business, but she often wonders if anyone

Andrea Wasserman knows her business, but she often wonders if anyone else really does. Andrea owns and operates a successful catering company. Each catered event she manages is unique. Her company enj...

Q: 1. Which operation would be most likely to experience a seasonal

1. Which operation would be most likely to experience a seasonal sales trend? A. Ski resort B. Downtown business hotel C. Suburban business hotel D. Select-service highway hotel 2. Which is the found...

Q: 1. When a hotel’s room revenue forecasts are consistently and unrealistically

1. When a hotel’s room revenue forecasts are consistently and unrealistically too low they A. result in under-aggressive room rate determinations and rates that are set too low. B. cause unrealistic h...

Q: 1. The two most common methods of classifying different types of

1. The two most common methods of classifying different types of budgets are by their length and A. purpose. B. amount. C. horizon. D. complexity. 2. Which type of budget would provide management wi...

Q: 1. A bar manager estimates her next month’s beverage revenue will

1. A bar manager estimates her next month’s beverage revenue will be $85,200. The bar manager forecasts her Cost of Sales: Beverages for next month to be 22%. What would be amount of this manager’s fo...

Q: 1. An operation’s aging report is used monitor its A

1. An operation’s aging report is used monitor its A. accounts receivable (AR). B. accounts payable (AP). C. credit applications (CA). D. statement of cash flows (SCF).   2. What is the most commonly...

Q: 1. A capital budget is the tool hospitality managers use to

1. A capital budget is the tool hospitality managers use to plan and evaluate A. the purchase of fixed assets. B. the amount of cash to keep on hand. C. their selling prices. D. their operating expens...

Q: 1. The two factors that most affect the returns achieved on

1. The two factors that most affect the returns achieved on an investment are A. rate of investment return and length of investment. B. rate of investment return and amount of investment. C. amount of...

Q: 1. A hospitality business owner pays $50,000 per

1. A hospitality business owner pays $50,000 per year in interest on loans to her business. The annual net operating income from her business is $220,000. What is this owner’s debt coverage ratio? A....