REVENUE MANAGEMENT COMPREHENSIVE
EXAMS QUESTIONS AND ANSWERS SET A+
✔✔what is a rack rate?
-the price of rooms when nonrefundable advance purchases are made
-the price of rooms when no discounts of any type are offered
-the price of rooms when 0-10% discounts are offered
-the price for the most expensive room in a hotel - ✔✔the price of rooms when no
discounts of any type are offered
✔✔what is: total period revenue/ (number of available seats x hours of seat availability)
-the formula for REVPASH
-the formula for check average
-the formula for contribution margin (CM)
-the formula for REVPAR - ✔✔the formula for REVPASH
✔✔what is the term used to identify a management philosophy that places customer
gain ahead of short-term revenue maximization in revenue management decision
making?
-revenue enhancement management
-yield management
-profit yield management
,-customer-centric revenue management - ✔✔customer-centric revenue management
✔✔what is the term used to describe the potential customers to whom a business's
marketing activities and messages are directed?
-the yield market
-the comp set
-the target market
-the centric market - ✔✔the target market
✔✔what is the term used to describe efforts undertaken to encourage travel and tourism
to a specific geographic area or attraction?
-goal management
-destination marketing
-yield intention marketing
-objective marketing - ✔✔destination marketing
✔✔an income statement is also commonly referred to as a(n)
-P&L
-budget
-cash flow
-expense classification - ✔✔P&L
✔✔an operation's year-end income statement shows before tax profits of $210,000.
Revenues for the year were $1,850,000. What were this operation's expenses for the
year?
-$1,430,000
-$1,640,000
-$2,060,000
-$2,300,000 - ✔✔$1,640,000
,✔✔an operation's income statement shows total expenses of $45,500 for a specific
month. Before tax
-$42,250
-$46,750
-$48,750
-$52,250 - ✔✔$48,750
✔✔why are a business's vendors interested in information contained in that business's
income statement?
-so they can arrange for the best time to make deliveries
-to help the vendor secure future orders from the business
-to assist in determining which products should be sold to the business
-so they can make decisions about payment terms that should be offered - ✔✔so they
can make decisions about payment terms that should be offered
✔✔a manager's total revenue for an accounting period is $150,000. Revenue from one
of the operation's three revenue sources is $30,000. What was the sales percentage of
that revenue source?
-10%
-20%
-30%
-40% - ✔✔20%
✔✔what is an example of a controllable cost?
-rent
-insurance
-marketing
-loan payments - ✔✔marketing
, ✔✔what is an example of a fixed cost?
-utility services
-salaries and wages
-licenses and permits
-repairs and maintenance - ✔✔licenses and permits
✔✔what is the formula for prime cost?
-total cost of sales - total labor = prime cost
-total cost of sales + total labor = prime cost
-total cost of sales - controllable income = prime cost
-total cost of sales + controllable income = prime cost - ✔✔total cost of sales + total
labor = prime cost
✔✔a manager's operation had an income before income taxes of $2,000 in a month.
Total expenses were $18,000 in that month. What was the operation's total sales
amount in that month?
-$20,000
-$25,000
-$30,000
-$35,000 - ✔✔$20,000
✔✔a manager compares the revenue results for a 28-day P&L period to the results of
the 28-day P&L report from the previous 28-day period. What source of information is
that manager using to analyze the revenue portion of the current P&L statement?
-budget
-chain standard
-industry standard
-historical performance - ✔✔historical performance
EXAMS QUESTIONS AND ANSWERS SET A+
✔✔what is a rack rate?
-the price of rooms when nonrefundable advance purchases are made
-the price of rooms when no discounts of any type are offered
-the price of rooms when 0-10% discounts are offered
-the price for the most expensive room in a hotel - ✔✔the price of rooms when no
discounts of any type are offered
✔✔what is: total period revenue/ (number of available seats x hours of seat availability)
-the formula for REVPASH
-the formula for check average
-the formula for contribution margin (CM)
-the formula for REVPAR - ✔✔the formula for REVPASH
✔✔what is the term used to identify a management philosophy that places customer
gain ahead of short-term revenue maximization in revenue management decision
making?
-revenue enhancement management
-yield management
-profit yield management
,-customer-centric revenue management - ✔✔customer-centric revenue management
✔✔what is the term used to describe the potential customers to whom a business's
marketing activities and messages are directed?
-the yield market
-the comp set
-the target market
-the centric market - ✔✔the target market
✔✔what is the term used to describe efforts undertaken to encourage travel and tourism
to a specific geographic area or attraction?
-goal management
-destination marketing
-yield intention marketing
-objective marketing - ✔✔destination marketing
✔✔an income statement is also commonly referred to as a(n)
-P&L
-budget
-cash flow
-expense classification - ✔✔P&L
✔✔an operation's year-end income statement shows before tax profits of $210,000.
Revenues for the year were $1,850,000. What were this operation's expenses for the
year?
-$1,430,000
-$1,640,000
-$2,060,000
-$2,300,000 - ✔✔$1,640,000
,✔✔an operation's income statement shows total expenses of $45,500 for a specific
month. Before tax
-$42,250
-$46,750
-$48,750
-$52,250 - ✔✔$48,750
✔✔why are a business's vendors interested in information contained in that business's
income statement?
-so they can arrange for the best time to make deliveries
-to help the vendor secure future orders from the business
-to assist in determining which products should be sold to the business
-so they can make decisions about payment terms that should be offered - ✔✔so they
can make decisions about payment terms that should be offered
✔✔a manager's total revenue for an accounting period is $150,000. Revenue from one
of the operation's three revenue sources is $30,000. What was the sales percentage of
that revenue source?
-10%
-20%
-30%
-40% - ✔✔20%
✔✔what is an example of a controllable cost?
-rent
-insurance
-marketing
-loan payments - ✔✔marketing
, ✔✔what is an example of a fixed cost?
-utility services
-salaries and wages
-licenses and permits
-repairs and maintenance - ✔✔licenses and permits
✔✔what is the formula for prime cost?
-total cost of sales - total labor = prime cost
-total cost of sales + total labor = prime cost
-total cost of sales - controllable income = prime cost
-total cost of sales + controllable income = prime cost - ✔✔total cost of sales + total
labor = prime cost
✔✔a manager's operation had an income before income taxes of $2,000 in a month.
Total expenses were $18,000 in that month. What was the operation's total sales
amount in that month?
-$20,000
-$25,000
-$30,000
-$35,000 - ✔✔$20,000
✔✔a manager compares the revenue results for a 28-day P&L period to the results of
the 28-day P&L report from the previous 28-day period. What source of information is
that manager using to analyze the revenue portion of the current P&L statement?
-budget
-chain standard
-industry standard
-historical performance - ✔✔historical performance
