quiz 2 #2

Question 1

what is a 5 year plan?

Answer 1

its created in advance to the annual budget and it looks at 5 years.
it is updated every year- for example, in 2010, they will budget for 2011, 2012,2013,2014,2015 and then in 2011 they star over and budget for 2012.2013,2014,2015,2016…..

Question 2

who creates the 5 year plan?

Answer 2

owner, GM, DSOM, controller, rev manager

Question 3

what is the prupose of a 5 year plan?

Answer 3

to also budget for renovations, replacement of equipment etc.

Question 4

what is an annual budget?

Answer 4

covers 12 months, it is broken down b y day by day by market segments. they forecast revenues, then expenses are calculated. once it is approved it does NOT change

Question 5

who creates the annual budget?

Answer 5

the whole management team

Question 6

what is the best advice ever?

Answer 6

take lots of notes
justify your budgeting strategies
compare your notes of your assumption to actual results
be able to justify why or why not you met the budget

Question 7

what is a 3 month re forecast

Answer 7

its created by the revenue manager
“just because its in the budget doesnt mean its in the bank” it is an operational planning tool

Question 8

what is a weekly 2 week forecast?

Answer 8

its used to create staff schedules

details include arrival times, arrival numbers,departures, departure times