unit 2 Planning

_______________ involves the use of budgets and budgetary reports throughout the period to coordinate , evaluate and control day to day operations.

• Budget

• Budgetary control

• Budgeting

• Management

Which of the below is NOT an advantage of Budgetary control

• Good incentives to workers

• Easy availability of working capital

• Optimum use of capital resources

• Budgeting depends a lot on forecasting

Which of the below is the Limitation of budgeting?

• Encourages accountability

• Improved planning and control

• Inflexibility

  Time-consuming

• Improves financial reporting

Forecast the room revenue for hotel Royale for the month of year 2025.

Room available = 300

Projected occupancy = 70%

ADR = INR 5500/-

• INR 42,15,75,000

• INR 11,55,000

• INR 3,46,50,000

• INR 3,58,05,000

Forecast rooms available for sale . For a 400 rooms property, 5 rooms are OOO, 150 stayovers, 100 room reservations. as per the historical data, no show is 10% . 7 understay rooms and 12 overstay rooms.

• 100

• 150

• 120

• 70

Which of the below is part of the forecast formula

• Day use room

• Complimentary room

• Out of order room

• Out of service room

The ___________ is a prediction of future cash receipts and expenditure for a particular time period.

• Cash Budget

• Capital Expenditure

• Master Budget

• Sales budget

This budget is required for smooth opening of a new hotel is called ________.

• Operating budget

• Capital budget

• Pre-opening budget

• Opening budget

Budget adjustment & resubmission is part of ____________

• Budget Preparation

• Budget Evaluation

• Budget Execution

• Budget Audit

Service departments of the hotel can have zero based budget

• TRUE

• FALSE