HFT3431 Yost Quiz 6 Fall 2018
A sunk cost is:
a cost that has already been incurred.
As occupancy decreases, hotel managers should generally expect:
a decrease in total variable costs.
Which of the following types of costs is often used to evaluate the productivity of a department or area of responsibility?
a standard cost
Which of the following is not a fixed cost?
operating supplies
Which of the following types of costs is generally allocated among profit centers?
overhead costs
In January, the total fixed costs at the 250-room Vacation Hotel were $40,000. With 5,000 rooms sold in January, the average fixed cost per room sold was $8. The forecast for February projects a 10% increase in occupancy over January. If this increase in sales volume occurs, the total fixed costs for February would be:
relatively the same as in January.
The owner of the River Front Restaurant is renegotiating the operation's lease and has the option of either an annual fixed lease of $55,000 or a variable lease set at 5% of annual revenue. Which option costs less if annual revenue is expected to be $1,200,000?
the fixed lease
In the analysis of purchasing alternatives, the indifference point identifies:
the level of business activity at which costs are the same for each alternative.
The current cost of food sold at the Wharf Restaurant is 35% of sales. If sales increase, the restaurant manager should generally expect an increase in:
the total cost of food sold.
Which cost decreases the most on a per-unit basis as activity increases?
fixed