Hospitality basic financials

Which is a revenue?

• Average check

• Mortgage on building

• Capital

• Beverage sales

Liabilities and expenses mean the same thing

• True

• False

Prime cost is

• F&B COGS + labor cost

• Wages and staff benefits

• Controllable and non controllable expenses

• F&B COGS + break even point

CAPEX include

• Food inventories

• Equipment purchase

• Guest supplies

• All of the above

GOP is

• Profit after all expenses have been deducted

• Sales - cost of sales

• Profit after tax

• Sales - prime cost

What is the difference between profit and cash flow? Which department manages cash flow?

What is the greatest fixed cost in a hotel?

• Food & beverage

• Utility bills

• Property taxes

• Mortgage or rent

What are the differences between the 3 levels of strategy? Who is/are responsible at each level?

Define, in your own words, the meaning of strategy.

• A plan of action designed to achieve a long-term or overall aim

• A random set of actions without a specific goal

• A short-term tactic for immediate results

• An unplanned series of events

As the CEO of a hotel chain, which kind of macro-level data will be most useful to analyze for preparing your strategy?

• Local weather patterns

• Global economic trends

• Individual guest preferences

• Daily housekeeping schedules