Sample Examination Questions 495 18. Forecast your property’s rooms revenue for the upcoming year given the ȱDZ Rooms available for sale: 29,752 Occupancy percentage: 68% Average daily rate (ADR): $48 A) $873,007 B) $971,105 C) $1,035,724 D) $1,428,096 ȱ ŗşǯȱ ȱĜȱȱȱȱǰȱȱȱȱȱ upon: A) managerial intuition. B) rigorous productivity standards. C) reliable business volume forecasts. D) the abilities of individual employees. ȱ ŘŖǯȱ ȱȱ ȱȱȱȱ ȱ ȱȱȱȱ year: ȱ ȱę¡ȱDZȱ ȱȱǞŗŘśǰŖŖŖ Average daily rate (ADR): $31.00 Variable costs per room sold: $12.00 How many rooms must be sold during the upcoming year if the owner ȱ ȱȱǞŚśǰŖŖŖȱęǵȱȱǻȱȱ¡Ǽ A) 7294 B) 8947 C) 9356 D) 9891 21. Zero-base budgeting dictates that all expenses, in order to be approved, ȱ¢ȱȱęȱȱȱǯȱȱȱ ȱȱȱ ȱ departments would this type of budgeting plan be most appropriate? A) rooms B) engineering C) food and beverage D) sales and marketing
496 Sample Examination Questions 22. When should variances between budgeted revenues and actual revenues be investigated? A) when the variance is favorable B) when the variance is unfavorable C) when the dollar variance exceeds the percentage variance ȱ Ǽȱ ȱȱȱȱęǰȱȱȱȱȱȱȱ unfavorable 23. What should be the overall goal of any yield management strategy? ȱ Ǽȱ ¡ȱę B) an increased ADR C) reduced expenditures D) increased occupancy percentages ȱ ŘŚǯȱ ȱȱȱȱȱȱ ȱȱȬȱȱȱĞȱ the cancellation hour: A) the guest is still entitled to a room, but at rack rate only. B) the hotel should accommodate the guest if a room is available. C) the hotel is ethically, not legally, obligated to accommodate the guest. D) the guest has forfeited any claim to a room and should be encouraged ȱęȱȱǯ 25. Travel agent bookings at your property have decreased by nearly 30% over ȱȱ ȱ¢ǯȱȱ ȱȱĴȱȱȱȱȱǰȱ¢ȱȱ decided to: A) make sure that commissions are paid promptly. B) give guests who book rooms through travel agents a special rate. C) increase the commission percentage paid to travel agents from 10% to 20%. D) provide incentives to front desk agents responsible for receiving reservations through travel agents.
Sample Examination Questions 497 26. What should employees be instructed to do if a guest wishes to enter an unlocked room in which they are working? A) The employee should leave the room and return once it has been vacated. B) The employee should ask the guest his or her name and to see a room key. C) The employee should call the front desk and have them handle the situation. ȱ Ǽȱ ȱ¢ȱȱȱȱȱȱȱȱȱȱĞȱȱ work has been completed. 27. What type of guestroom allows occupants to move between rooms without having to use the corridor? ȱ Ǽȱ ȱ Ǽȱ C) connecting D) twin-doubles 28. Which of the following procedures is recommended for dealing with a guest who has presented and invalid credit card? A) The front desk agent should inform the manager on duty. B) The front desk agent should ask the guest to pay cash for the room. C) The front desk agent should politely request an alternate form of payment. D) The front desk agent should call the issuer of the card to verify that the card has not been stolen. 29. In order to enhance guest safety and security, the guestroom doors at your property should be: A) self-closing and self-locking. ȱ Ǽȱ ȱ ȱȱĚȱȱȱȱǯ C) triple-hinged and weigh at least 30 lbs. (20 kgs.). D) airtight to prevent smoke from entering the room. 30. What is generally the most economical heat source for laundry dryers? A) steam. B) electricity C) natural gas D) cogenerated vapor.
498 Sample Examination Questions ȱ řŗǯȱ ȱȱ¡ȱȱȱȱǵ A) as needed, regardless of occupancy levels B) when the property can obtain the best cost C) during periods of high occupancy—busy times create increasing needs for maintenance. D) during periods of low occupancy—most areas of the hotel are accessible during slow times. 32. When dealing with an overabundance of solid waste, a property should ȱȱěȱDZ A) recycling. B) incineration. C) source reduction. D) waste transformation. 33. What should a new food and beverage operation’s initial menu be based on? A) the operation’s seating capacity B) the availability of menu ingredients ȱ Ǽȱ ȱȱȱȱȱȱě D) the needs and desires of the target markets 34. Which method of vegetable preparation results in the least amount of vitamin loss? A) frying B) baking C) steaming D) blanching 35. One of your operation’s menu items has a low contribution margin and is low in popularity. What should you do? A) seriously consider replacing the item B) reduce the price of the item in order to boost sales C) cautiously raise the price in order to increase the contribution margin D) promote the item by moving it to a highly visible location on the menu
Sample Examination Questions 499 36. What mark-up multiplier must be used if you desire a food cost percentage of 35%? A) 2.33 B) 2.86 C) 3.50 D) 4.10 37. When should standardized recipes be used? ȱ Ǽȱ ¢ȱ ȱȱěȱȱ B) only when the menu is changed frequently C) only in very large food and beverage operations D) always, in nearly every food and beverage operation 38. Which of the following is a drawback of using outdoor advertising? ȱ Ǽȱ ȱ ȱȱěȱȱ¢ȱȱȱǯ ȱ Ǽȱ ȱȱĜȱȱȱȱȱȱȱȱǯ C) Outdoor advertising tends to lower the perceived image of the property. D) Outdoor advertising is expensive when compared to other advertising mediums. ȱ řşǯȱ ȱȱȱȱ ȱȱĞȱȱęȱȱǰȱ the strategic marketing plan should be developed for at least: A) 6 months. B) 12 months. C) 24 months. D) 36 months. 40. Which of the following should be a consideration when developing an advertising budget? A) the previous year’s advertising budget ȱ Ǽȱ ȱȱȱȱȱȱ C) the types of advertising medium used by your competitors D) the size of the property and the types of services and facilities it has to ěǯ
500 Sample Examination Questions Questions #41 through #50 relate to the following scenario: You are the recently hired general manager of the Skyline Hotel, a 450-room full- ȱ¢ȱȱȱȱȱȱȱȱȱȱǯȱȱflȱ foremost responsibility is to implement marketing and yield management strate- ȱȱȱȱȱ¢Ȃȱęȱǯȱȱȱȱȱ ¢ȱȱȱ¢ȱȱȱȱȱ¢ǰȱȱęȱȱ realized by the property has decreased considerably over the same period. Selected operating data for the hotel for the two most recent years are as follows: 19X1 19X2 Rooms Sold 105,120 110,376 Rooms Revenue $7,610,688 $7,686,794 Variable Costs $2,497,651 $2,672,486 A recently conducted competition analysis revealed that your property has 3 main competitors. ȱȱ ȱ ěȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ǰȱ ¢ȱ also have modestly higher room rates. Additional information from the analysis includes: 19X1 19X2 Total Market Room Nights Available 467,200 536,550 Total Market Room Nights Sold 329,376 349,587 ȱ Śŗǯȱ ȱȱȱ ȱȱ ȱȱ¢ȱȱȱȱ¢ȱ property most appreciate? A) an indoor swimming pool ȱ Ǽȱ ¢ȱěȱȱ C) a complimentary continental breakfast ȱ Ǽȱ ȱȱȱěȬ¢ȱȱȱ ȱ ŚŘǯȱ ȱȱȱ ȱȱȱĴȱȱȱȂȱȱ ę¢ǵ A) a decline in occupancy B) a decline in the property’s fair share C) a disproportionate increase in variable costs as compared to room revenue ȱ Ǽȱ ȱȱȱ ȱ¢ȱȱȱŗşŘȱ ȱȱȱŗşŗȱ
Sample Examination Questions 501 43. Based on the information provided, which of the following market segments should the Skyline Hotel target? A) corporate meetings B) corporate executives C) the local transient market D) cost-conscious independent business travelers ȱ ŚŚǯȱ ȱȱȱȱ¢ȱȱȱȱŗşŘȱȱȱȱ¢Ȃȱȱ ȱȱȱȱŗşŗǵ A) a competing property opened for business B) poor long-range marketing plans resulted in decreased occupancy ȱ Ǽȱ ȱȱȱ¢ȂȱȱȱĞȱȱȱ D) a sluggish economy resulted in reduced travel budgets for many companies ȱ Śśǯȱ ȱȱȱȱȱǯȱȱǰȱ ȱȱȱ¢ȱȱȱŗşŘȱ compared to the competition? ȱ Ǽȱ ȱ¢ȱ¢ȱȱȱȱȱȱ B) the competition outdrew the skyline by a considerable margin C) the Skyline and the competition were identical in terms of market share vs. fair share D) both the Skyline Hotel and its competition overachieved in terms of market share vs. fair share ȱ ŚŜǯȱ ȱ ȱȱ¢ȂȱȱȱŗşŘǵȱǻȱȱȱ ȱ available for sale) A) $46.80 B) $53.25 C) $62.43 D) $69.64 47. If the average rack rate for your property is $82.50, what was the Skyline’s ¢ȱȱŗşŘǵ A) 46.8% B) 56.7% C) 62.3% D) 67.2%
502 Sample Examination Questions 48. Which of the following will most increase the property’s yield for the upcoming year? ȱ Ǽȱ ȱę¡ȱ B) decreased variable costs ȱ Ǽȱ ȱǞŘȱȱȱȱȱȱŗşŘ ȱ Ǽȱ ȱśȱȱȱȱȱ¢ȱȱȱŗşŘ ȱ Śşǯȱ ȱȱȱ ȱŗşŘȱȱ ȱȱȱȱȱ- ȱȱȱęȱȱȱȱȱȱȱ¢ȱǻŗşřǼǵ A) a $3 increase in the ADR ȱ Ǽȱ ȱǞŗŖŖǰŖŖŖȱȱȱę¡ȱ C) a 5 point reduction in the variable cost percentage D) a 5 point increase in the Skyline’s occupancy percentage ȱ śŖǯȱ ȱȱȱȱȱȱȱȱȱǞŘřȱȱȱȱȱ ȱ¢ǯȱȱflȱȱěȱȱȱȱȱȱ to increase occupancy during slow periods. The cost of the campaign is estimated at $28,000. If the special rate for the campaign is $59 per room, how many room nights must be sold in order for the campaign to break-even? A) 475 B) 778 C) 994 D) 1217
Sample Examination Questions 503 Answers 1. D 2. D 3. C 4. B 5. B 6. D 7. A 8. C 9. C 10. B 11. A 12. C 13. A 14. D 15. A 16. B 17. A 18. B 19. C 20. B 21. D 22. D 23. A 24. B 25. A
504 Sample Examination Questions 26. B 27. C 28. C 29. A 30. C 31. D 32. C 33. D 34. C 35. A 36. B 37. D 38. B 39. D 40. D 41. B 42. C 43. D 44. A 45. A 46. A 47. B 48. D 49. C 50. B