Accounting the basic quiz

Question 1

ADR

Answer 1

Total Rooms revenue/rooms sold

Question 2

RevPar

Answer 2

ADR x Occupancy

Question 3

Productivity

Answer 3

Performance measurement for staffing levels. operations departments measures productivity based on Ocuppied rooms or covers, staffing changesare based on business demand, and Admin departments measure productivity based on a fixed schedule

Question 4

Cost of sales

Answer 4

Any item whose cost is associated with revenue,any item bought for resale to a guest or group. I,e, banquet rentals

Question 5

Controllables

Answer 5

A purchase or expense for internal hotel( not for resale) i,e, pencils

Question 6

Benefits

Answer 6

Marriott benefit costs including medical, dental, PTO as it is accrued, taxes

on the P&Lbenefits includes employee relations cost

cafeteria allocation

Question 7

Deducts

Answer 7

also called support costs. support the general hotel operations. pure expense department-no sales are generated. G&A, accounting, utilities, engineering, accidents, sales

Question 8

profit

Answer 8

revenue- expenses

Question 9

house profit

Answer 9

total sales minus department expenses minus support costs

total hotel’s operational profit

Question 10

BMF

Answer 10

Base management fee paid to management company each month

Question 11

Ff&E Escrow

Answer 11

contribution made each period into a fund for capitalk expenditures

Question 12

other deduction

Answer 12

building fire insurance, lease expense and licenses, real eastate taxes

Question 13

NOI

Answer 13

Net house profit

amount paid to the owners after BMP,FF&E & other deductions have been deducted from house profit

Question 14

Coding

Answer 14

revenue. cost of sales. wages. benefits. controllables. marketing. statistical

Question 15

Why is coding important

Answer 15

Critique purposes/understanding our spending

Question 16

Budgeting

Answer 16

remember what expenses should be accounted for in future years

Question 17

accruals- why do them

Answer 17

revenue recognition principles- revenue should always match expenses

ensure that P&Ls are stated properly -correct profit margins

account for all invoices each period so they are not carried over in a different year

Question 18

How do I calculate HPOR OR HPC BASIS?

Answer 18

Budgeted hours divided by budgetor coversed occupied rooms

Question 19

How do I manage it on a weekly basis?

Answer 19

calculate budgeted productivity rate for the period

divide totsl hours/total occ rooms or covers from your budger

if on fixed productivity, divide total budgeted hours by 4 weeks

get forcasted occupied rooms or covers at staff meeting and via email

Budgeted productivity rate x forecasted volume = total hours that you can use next week to in line with budget

Question 20

Step 3: calculate total hours

Answer 20

Total occupied rooms= 742

Budgeted productivity rate= 0.480 HPOR

742 X 0.480= 356 HOURS

The housekeeping manager can schedule housekeepers for 356 hours for the week ti achieve budgeted productivity