Question 1

Elasticity of the market place refers to the degree that the supply of rooms increases or decreases as room rates (prices) increase or decrease.

Accepted Answer

A) True 
 B)False

Question 2

Match the items in the left column with the best answer from items in the right column.
-Telephone hookup

Accepted Answer

A)  Computer display 
B)  Profit before fixed expenses 
C)  Employees can act 
D)  Tip and tax inclusive 
E)  Front office
F) Device for heart-attack victims
G) Ethnic and cultural diversity
H)Pit or bucket
I)Not listed
J)AH&LA
K) In-room amenity
L)PBX
M)A corporation, but not a REIT
N)Cot
O)Author
P)Off the shelf
Q)Bed type
R)Key
S)Part of the master account
T)New York City has one

Question 3

A "road warrior"is someone:

Accepted Answer

A)  Caught in a traffic jam 
B)  In military uniform asking for a discounted rate 
C)  Secretly carrying out a shopping audit for the hotel 
D)  Who sleeps away from home a great deal and battles the annoyances of travel 
E)  Both A and B depending on whether it is civilian or military slang

Question 4

With a management contract, the owning company pays the management company a fee; with a lease, the managing company pays rent to the owning company.

Accepted Answer

A) True 
 B)False

Question 5

The housekeeping staff keeps watch on and alerts management to "do-not-disturb"rooms that have been unattended for most of the day.

Accepted Answer

A) True 
 B)False

Question 6

Compute the anticipated room rate using the Rule-of Thumb, or Building Cost, Rate.
GIVEN: Number of rooms 800
Average Occupancy Percentage first two years 60%
Cost of erecting the building $64,500,000
Cost of acquiring the land $8,000,000
Legal costs to incorporate $500,000
Upfront costs to lease furniture and TV's $100,000
Landscaping costs $1,250,000
Cost of tearing down the old structure $750,000

Accepted Answer

The answer of Compute the anticipated room rate using the...

Question 7

Condominiums were developed in the ski resorts. Timeshares, which came later to the United States, were developed in the sunshine states.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is out-of-place with the rest of the set?

Accepted Answer

A)  Use rate 
B)  Part-day rate 
C)  Shoulder rate 
D)  Day rate 
E)  None of the above; that is, they all refer to the same rate

Question 9

Due bills were in favor during the high occupancy period that closed the 20th Century and, as expected, were in disfavor during the huge decline in occupancy that followed the World Trade tragedy.

Accepted Answer

A) True 
 B)False

Question 10

The hotel's chart of accounts is a secretly coded list of accounts that differs hotel to hotel, the idea for which originated in the casino hotels' need for privacy.

Accepted Answer

A) True 
 B)False

Question 11

The huge increase in cell-phone use has brought a corresponding revenue increase in the telephone departments, making telephone the fastest growing department percentagewise within the lodging industry.

Accepted Answer

A) True 
 B)False

Question 12

Cashiers in all departments compare their actual bank counts to what they should have, which is determined by records, registers and computations, in order to compute over and short.

Accepted Answer

A) True 
 B)False

Question 13

Early efforts at "brand-stretching:"

Accepted Answer

A)  Resulted in a better business cycle 
B)  Created new trade organizations 
C)  Encouraged chains to acquire other companies and brands 
D)  Improved the RevPar of mid-scale hotels 
E)  All of the above except D

Question 14

Which hotel chains has won two Malcolm Baldrige Awards for quality?

Accepted Answer

A)  Ritz-Carlton 
B)  Hilton 
C)  Hyatt 
D)  Four Seasons 
E)  None of the above

Question 15

Match the items in the left column with the best answer from items in the right column.
-Vallen

Accepted Answer

A)  Computer display 
B)  Profit before fixed expenses 
C)  Employees can act 
D)  Tip and tax inclusive 
E)  Front office
F) Device for heart-attack victims
G) Ethnic and cultural diversity
H)Pit or bucket
I)Not listed
J)AH&LA
K) In-room amenity
L)PBX
M)A corporation, but not a REIT
N)Cot
O)Author
P)Off the shelf
Q)Bed type
R)Key
S)Part of the master account
T)New York City has one

Question 16

The REIT Modernization Act made one change that is very positive for the lodging industry: It now allows REITs to manage the properties they own.

Accepted Answer

A) True 
 B)False

Question 17

A guest who offers a credit card at the time of check-in is:

Accepted Answer

A)  Just a regular guest 
B)  A member of a single-entity group 
C)  A paid-in-advance guest 
D)  Now a city-ledger account 
E)  Part of a wholesaler's package

Question 18

Callers who cancel their reservation are not given a cancellation number (although the computer creates one) unless the guest has pre-paid the reservation at some earlier date.

Accepted Answer

A) True 
 B)False

Question 19

Strange as it may seem, American hotels generally operate on the European plan.

Accepted Answer

A) True 
 B)False

Question 20

The lodging industry has been reluctant to introduce electronics into its operations because doing so will destroy the whole concept of personalized host-guest relations.

Accepted Answer

A) True 
 B)False

Exam 15: Understanding Billing and Financial Operations in the Hospitality Industry

Elasticity of the market place refers to the degree that the supply of rooms increases or decreases as room rates (prices) increase or decrease.

Match the items in the left column with the best answer from items in the right column. -Telephone hookup

A "road warrior"is someone:

With a management contract, the owning company pays the management company a fee; with a lease, the managing company pays rent to the owning company.

The housekeeping staff keeps watch on and alerts management to "do-not-disturb"rooms that have been unattended for most of the day.

Condominiums were developed in the ski resorts. Timeshares, which came later to the United States, were developed in the sunshine states.

Which of the following is out-of-place with the rest of the set?

Due bills were in favor during the high occupancy period that closed the 20th Century and, as expected, were in disfavor during the huge decline in occupancy that followed the World Trade tragedy.

The hotel's chart of accounts is a secretly coded list of accounts that differs hotel to hotel, the idea for which originated in the casino hotels' need for privacy.

The huge increase in cell-phone use has brought a corresponding revenue increase in the telephone departments, making telephone the fastest growing department percentagewise within the lodging industry.

Cashiers in all departments compare their actual bank counts to what they should have, which is determined by records, registers and computations, in order to compute over and short.

Early efforts at "brand-stretching:"

Which hotel chains has won two Malcolm Baldrige Awards for quality?

Match the items in the left column with the best answer from items in the right column. -Vallen

The REIT Modernization Act made one change that is very positive for the lodging industry: It now allows REITs to manage the properties they own.

A guest who offers a credit card at the time of check-in is:

Callers who cancel their reservation are not given a cancellation number (although the computer creates one) unless the guest has pre-paid the reservation at some earlier date.

Strange as it may seem, American hotels generally operate on the European plan.

The lodging industry has been reluctant to introduce electronics into its operations because doing so will destroy the whole concept of personalized host-guest relations.