HFT 3431 - Final Exam questions with
complete solutions already passed
The operations budget reflects - correct answer ✔✔Revenues and expenses
Flexible budgeting is most useful when: - correct answer ✔✔Planning for different levels of
operations
The operations budgeting process that requires a total substantiation for all expenses is referred
to as: - correct answer ✔✔Zero-base budgeting
The current year's marketing budget of the Roadside Inn is $30,000. Costs are expected to
increase by 10% during the upcoming year. If the operations budget for the upcoming year sets
marketing expenses at $33,000, which of the following budgeting methods was probably used?
- correct answer ✔✔Incremental budgeting
The Lucky Inn budgeted revenue of $12,000 during a period when $10,000 was actually
generated. The percentage variance for the period was: - correct answer ✔✔16.7% unfavorable
For the first week of May, the Carlisle Club budgeted for 600 room nights at an average room
rate of $65. Actual room nights for the week totaled 500 with an average room rate of $70. The
price variance for the week was _____ and the volume variance for the week was ______. -
correct answer ✔✔$3,000 favorable; $6,500 unfavorable
For the first week of August, the East Side Convention Center budgeted for 2,500 room nights at
an average room rate of $80. Actual room nights for the week totaled 2,700 with an average
room rate of $75. - correct answer ✔✔$16,000 favorable
complete solutions already passed
The operations budget reflects - correct answer ✔✔Revenues and expenses
Flexible budgeting is most useful when: - correct answer ✔✔Planning for different levels of
operations
The operations budgeting process that requires a total substantiation for all expenses is referred
to as: - correct answer ✔✔Zero-base budgeting
The current year's marketing budget of the Roadside Inn is $30,000. Costs are expected to
increase by 10% during the upcoming year. If the operations budget for the upcoming year sets
marketing expenses at $33,000, which of the following budgeting methods was probably used?
- correct answer ✔✔Incremental budgeting
The Lucky Inn budgeted revenue of $12,000 during a period when $10,000 was actually
generated. The percentage variance for the period was: - correct answer ✔✔16.7% unfavorable
For the first week of May, the Carlisle Club budgeted for 600 room nights at an average room
rate of $65. Actual room nights for the week totaled 500 with an average room rate of $70. The
price variance for the week was _____ and the volume variance for the week was ______. -
correct answer ✔✔$3,000 favorable; $6,500 unfavorable
For the first week of August, the East Side Convention Center budgeted for 2,500 room nights at
an average room rate of $80. Actual room nights for the week totaled 2,700 with an average
room rate of $75. - correct answer ✔✔$16,000 favorable
