AAE Elevate_F&B - P&L Training Quiz

What is the significance of the Profit and Loss (P&L) statement in the hospitality industry?

• Evaluating the nutritional value of menu items

• Tracking the availability of parking spaces

• Analyzing financial performance and determining profitability

• Measuring the quality of in-room amenities

What does COGS stand for?

• Cost of Goods Sold

• Company's Operating Growth Strategy

• Customer Order Generation System

• Cash on Gross Sales

What does royalty fee stand for?

• A tax imposed on luxury items

• A payment made to a king or queen

• A fee paid for the use of a patent, trademark, or copyright

• A charge for using a public facility

What does top line and bottom line stand for?

• Top: Highest revenue-generating product; Bottom: Lowest performing product

• Top: Executive team; Bottom: Entry-level employees

• Top: Premium services; Bottom: Basic services

• Top: Revenue; Bottom: Net Profit

What's the difference between controllable & non-controllable expenses, and the alternative terminology?

• Controllable expenses can be reduced; Non-controllable expenses are fixed

• Controllable expenses are long-term; Non-controllable expenses are short-term

• Controllable expenses are mandatory; Non-controllable expenses are optional

• Controllable expenses are direct; Non-controllable expenses are indirect

What are the stages of a P&L statement?

• Income, Expenses, Profit, Loss

• Revenue, COGS, Gross Profit, Net Profit

• Introduction, Growth, Maturity, Decline

• Planning, Execution, Analysis, Review

How do we generate a variance report?

• By analyzing employee attendance

• By reviewing customer feedback

• By comparing actual performance with budgeted expectations

• By tracking social media engagement

What does EBITDA stand for?

• Efficiency Boost in Trade and Assets

• Earnings Before Income, Taxes, Debt, and Assets

• Earnings Before Interest, Taxes, Depreciation, and Amortization

• Every Business Incorporates Total Debt and Assets

What is gross profit? Can you give details?

• Gross profit is total revenue minus expenses

• Gross profit is the amount left after deducting cost of goods sold (COGS) from total revenue

• Gross profit is the company's net earnings after all expenses are paid

• Gross profit is the revenue before taxes

What do accruals stand for?

• Record expenses when you pay and income when you receive it

• Record Income when the transaction takes place and expenses when you receive the bill