Eduqas Hosp - factors contributing to success

What are the components included in basic costs for hospitality and catering?

• Employee wages, decoration, and insurance

• Employee wages, National Insurance contributions, and pension contributions

• Decoration, furnishings, and health and safety equipment

• Rent, rates, gas, and electricity

Answer explanation

The correct choice includes essential labor costs: employee wages, National Insurance contributions, and pension contributions, which are fundamental to operating a hospitality and catering business.

How does the value of the pound (£) affect the hospitality and catering sector?

• It has no effect on spending habits

• A strong pound leads to less spending

• A weak pound leads to more spending

• A strong pound leads to more spending

Answer explanation

A strong pound increases consumers' purchasing power, making it more affordable for them to spend on hospitality and catering services. This leads to higher spending in the sector.

What is VAT and how is it used in the hospitality and catering sector?

• A tax on employee wages

• A tax added to the final cost of goods and services

• A tax on imported goods only

• A tax that reduces the cost of services

Answer explanation

VAT, or Value Added Tax, is a tax added to the final cost of goods and services, including those in the hospitality and catering sector. It is not a tax on wages or imports, nor does it reduce service costs.

What environmental practices are encouraged in the hospitality and catering sector?

• Increase energy consumption

• Reduce, reuse, and recycle

• Use non-local ingredients

• Increase CO₂ emissions

Answer explanation

In the hospitality and catering sector, the practice of 'reduce, reuse, and recycle' is encouraged to minimize waste and promote sustainability, contrasting with options that increase consumption or emissions.

What is the formula for calculating Gross Profit % in the hospitality sector?

• (Cost Price - Selling Price) × 100

• (Selling Price - Cost Price) × 100

• (Gross Profit / Selling Price) × 100

• (Net Profit / Cost Price) × 100

Answer explanation

Gross Profit % is calculated by dividing Gross Profit by Selling Price and multiplying by 100. This shows the percentage of revenue that exceeds the cost of goods sold, making the correct choice (Gross Profit / Selling Price) × 100.

Which of the following is a benefit of new technology in the hospitality sector?

• Increased manual labor

• Cashless systems like contactless cards

• Higher energy consumption

• Reduced customer interaction

Answer explanation

Cashless systems like contactless cards enhance efficiency and convenience in the hospitality sector, allowing for quicker transactions and improved customer experience, unlike the other options which present drawbacks.

What is the role of media in the hospitality and catering sector?

• To increase costs

• To reduce customer feedback

• To advertise and attract customers

• To eliminate the need for websites

Answer explanation

The media plays a crucial role in the hospitality and catering sector by advertising and attracting customers, helping businesses reach a wider audience and promote their services effectively.

What is the impact of using local and seasonal ingredients in hospitality?

• Increases CO₂ emissions

• Reduces CO₂ emissions

• Increases transportation costs

• Reduces food quality

Answer explanation

Using local and seasonal ingredients reduces CO₂ emissions by minimizing transportation distances and supporting sustainable practices, making it an environmentally friendly choice in hospitality.

What is the significance of Net Profit in the hospitality sector?

• It is the total revenue before costs

• It is the profit after all costs are covered

• It is the profit before taxes

• It is the total cost of goods sold

Answer explanation

Net Profit is crucial in the hospitality sector as it represents the profit after all costs are covered, indicating the actual financial health and profitability of a business.

Which of the following is NOT a type of media used in the hospitality sector?

• Print media

• Broadcast media

• Social media

• Manual media

Answer explanation

Manual media is not a recognized type of media in the hospitality sector, unlike print, broadcast, and social media, which are commonly used for marketing and communication.