Test Bank for Accounting Essentials for Hospitality Managers, 3rd Edition by Chris Guilding | Complete Chapter-by-Chapter Exam Questions, Verified Answers & Instructor Resource

Test Bank for Accounting Essentials for Hospitality
Managers, 3e Chris Guilding | Comprehensive Chapter-by-
Chapter Practice Questions, Verified Answers & Instructor
Resource

All chapters covered




1

,Accounting Essentials for Hospitality Managers, 3e Chris Guilding (Test
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Bank All Chapters, 100% Original Verified, A+ Grade)
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Test Bank to accompany m m m




Accounting Essentials for Hospitality Managers m m m m




Chapter 1: Introduction: Hospitality Decision Makers’ Use of Accounting
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1. Which of the following is not an example of a sector that can be classified within
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the hospitality industry?
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A. Cruise liners m




B. Country and sports clubs m m m




C. Pubs and bars m m




D. Fast-food outlets m




E. All of the above can be classified within the hospitality industry
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2. Which of the following statements is not true?
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A. Designing a large hotel’s organisational structure and accounting system is
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complicated by the need to co-ordinate a range of disparate functions that typically
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include the provision of accommodation, restaurant and bar facilities.
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B. Hotels can be distinguished from most other service sectors as the location of the
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service provision is also the place where the customer purchases and consumes the
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services offered.
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C. High functional interdependency facilitates departmental accountability.
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D. The nature of management decision making in connection with selling rooms in a hotel can
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be likened to the sale of seats in the airline or entertainment industries.
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E. Hotels’ high sales volatility makes accurate budgeting more challenging.
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3. Which of the following is not a key characteristic of the hotel industry?
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A. High sales volatility. m m




B. High product perishability.
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C. High proportion of fixed costs.
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D. High proportion of labour intensive activities.
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E. All of the above are key characteristics of the hotel industry
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4. Which of the following is not a generally acknowledged sales volatility challenge that
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is evident in the hotel industry?
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A. Economic cycle volatility m m




B. Seasonal sales volatility m m




C. Staff turnover sales volatility
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D. Weekly sales volatility m m




E. Intra-day sales volatility m m




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,5. Which of the following is not a true statement?
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A. Relative to purchases in most other commercial contexts, there tends to be a short time
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span between order placement, production and sale of many items in a restaurant
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kitchen.
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B. A high proportion of a hotel’s costs do not vary in line with sales levels.
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C. Relative to most other industries, activities conducted in the hotel industry are
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not labour intensive.
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D. Achieving standardised approaches to reporting is more of a concern in m m m m m m m m m m




financial accounting than in management accounting.
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E. Management accounting is less standardised than financial accounting. m m m m m m m




6. Which of the following statements is untrue?
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A. A lack of confidence in financial accounting systems would likely make it harder to
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raise debt and equity funding.
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B. Management accounting systems are designed to help managers in their decision m m m m m m m m m m




making and control of businesses.
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C. Greater use of the Uniform System of Accounts is signifying increased standardisation
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of hotel account classification schemes and also financial performance reports
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produced by hotels.
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D. The accounting system is one of several information systems that monitor the
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performance of all departments within hotels.
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E. For the sake of a healthy economy, it is important that a reliable financial accounting
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system is established.
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7. Which of the following is not a true statement?
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A. Financial accounting concerns the preparation of financial reports for external users on a
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monthly basis.
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B. Management accounting concerns the provision of financial reports to managers. m m m m m m m m m




C. Management accounting reports can be produced using non- standardised m m m m m m m m




formats across companies.
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D. For most organisations, the accounting system can be seen as the most extensive and all
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encompassing information system.
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E. A reducing level of confidence in financial accounting systems would translate into a
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greater reluctance for equity providers to invest in companies.
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8. In the context of hotel management, which of the following does not represent an example of
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high perishability with respect to a sales opportunity?
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A. A specific room night.
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B. A delivery of strawberries.
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C. A delivery of bottled beer.
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D. A large conference room for a specific day.
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, E. None of the above, they are all examples of products or services with high perishability.
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