TCA 321 TEST#2 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

TCA 321 TEST#2 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 What is the main purpose of doing a short-term forecast? a. Staffing b. Revenue projections c. Maintenance d. Purchasing - Answers Staffing The operations budget reflects: a. balance sheet items. b. capital expenditures. c. revenues and expenses. d. cash receipts and disbursements. - Answers revenues and expenses. What is the minimum number of properties for a comp set, including your property? a. 3 b. 4 c. 5 d. There is no minimum - Answers 4 Which of the following statements about forecasting methods used in hospitality operations is false? a.Even with the best forecasts, managers should be prepared to cover deviations in activity from the forecasted levels of activity. b.When using a moving average forecasting approach, the greater the number of periods used in calculating the moving average, the less the effect of random variations. c.The two most important factors in selecting a forecasting method for a hospitality operation are the size and complexity of the operation and the skill of staff in forecasting. d.The more removed the forecast period is from the date the forecast is made, the greater the difficulty in making the forecast. - Answers The two most important factors in selecting a forecasting method for a hospitality operation are the size and complexity of the operation and the skill of staff in forecasting. Based on the in class STR Example, Amanda's Luxury Resort Hotel, which is correct? a. Over the last 6 months my company has performed better compared to last year in Occupancy % and RevPAR than all my competitors b. In general, each month my company gets a little better compared to my comp set for all KPIs c. My company has the lowest Occupancy % and RevPAR of all competitors for the average of the last 3 months d. My company is doing better than all my competitors in Occupancy % for the month - Answers My company has the lowest Occupancy % and RevPAR of all competitors for the average of the last 3 months For the first week of April, the Satin Table Restaurant budgeted 900 covers at a cost per cover of $6. Actual covers for the week were 950 at a cost per cover of $6.50. The cost variance for the week was: a. $450 unfavorable b. $450 favorable c. $25 unfavorable d. $25 favorable - Answers $450 unfavorable What type of budget is management's plans for the acquisition of long term assets such as equipment, land, building, etc? a. Flexible Budget b. Operations Budget c. Cash Budget d. Capital Budgeting - Answers Capital Budgeting Based on the in class STR Example, Amanda's Luxury Resort Hotel, how many hotel rooms are going to enter the market in the future? a. 0 b. 2 c. 92 d. 143 - Answers 143 A hotel has 1,000 rooms and the front desk manager projected that they would sell an average of 850 rooms per night for March. The budget standard for front desk clerks is 10 check ins per hour at an hourly rate of $12.50 per hour. During the month of March, front desk clerks actually checked in 27,000 rooms, worked 2,650 hours and were paid $12.65 per hour. What is the efficiency variance for front desk clerks? a. $625 unfavorable b. $187.50 favorable c. $625 favorable d. $187.50 unfavorable - Answers $625 favorable The operations budget reflects: a. cash receipts and disbursements b. revenues and expenses c. balance sheet items d. capital expenditures - Answers revenues and expenses The Lunch Depot uses a three-week moving average time series approach to forecast lunch sales. If sales for the past five weeks were: Week 1: $2,200 Week 2: $2,400 Week 3: $2,000 Week 4: $2,200 Week 5: $2,100 What would the sales forecast be for the upcoming week (Week 6)? a. $2,200 b. $2,200 c. $2,180 d. $2,100 - Answers $2,100 Which is not a valid reason for having a formalized budgeting plan? a. Budgets enable management to look forward b. It is a standard for comparison c. Provides a channel of communication d. To inform the owner/manager of the company goals - Answers To inform the owner/manager of the company goals Based on the in class STR Example, Amanda's Luxury Resort Hotel, how did you company fair compared to all industry segments? a. My company's RevPAR is doing worse compared to last year than all industry segments except the comp set for all time periods b. My company's Occupancy % is doing better compared to last year than all industry segments for all time periods c. My company's ADR is doing better compared to last year than all industry segments for all time periods d. My company is doing better then the tract scale grouping in all KPIs - Answers My company's RevPAR is doing worse compared to last year than all industry segments except the comp set for all time periods For the first week of April, the Satin Table Restaurant budgeted 900 covers at a cost per cover of $6. Actual covers for the week were 950 at a cost per cover of $6.50. The cost-volume variance for the week was: a. $25 favorable b. $450 favorable c. $450 unfavorable d. $25 unfavorable - Answers $25 unfavorable A hotel has 1,000 rooms and the front desk manager projected that they would sell an average of 850 rooms per night for March. The budget standard for front desk clerks is 10 check ins per hour at an hourly rate of $12.50 per hour. During the month of March, front desk clerks actually checked in 27,000 rooms, worked 2,650 hours and were paid $12.65 per hour. What is the volume variance for front desk clerks? a. $812.50 unfavorable b. $187.50 unfavorable c. $187.50 favorable d. $812.50 favorable - Answers $812.50 unfavorable Corporate executives at a nationwide restaurant chain wanted to refine their regional sales forecasts for the upcoming year. They invited key employees from the various regions to a three-day planning session focusing on economic conditions, menu changes, and other factors that could affect future sales. Which of the following forecasting methods did the corporate management team use? a. Market Research b. Econometrics c. Jury of Executive Opinion d. Sales Force estimates - Answers Jury of Executive Opinion Which of the following does the Monthly STAR Report not show? a. Your hotel's monthly room revenue b. Various industry segment year-to-date RevPAR c. Your hotel's profit for the month d. The comp set's rolling twelve month occupancy % e. All appear on the Monthly STAR Report - Answers Your hotel's profit for the month The company budgeted revenue of $150,000 during June when $140,000 was actually generated. The percentage variance for the period was: a. 6.7% favorable b. 6.7% unfavorable c. 7.2% unfavorable d. 7.2% favorable - Answers 6.7% unfavorable Which of the following statements about forecasting in hospitality operations is true? a. Forecasting sales is the responsibility of department managers, while forecasting expenses is the responsibility of the accounting department. b. The more removed the forecast period is from the date the forecast is made, the greater the difficulty in making the forecast. c. Because historical activity is often an unreliable indicator of future activity, managers should avoid using historical data as a basis for forecasting. d. Forecasting eliminates the uncertainty of future sales and expenses. - Answers The more removed the forecast period is from the date the forecast is made, the greater the difficulty in making the forecast. The best reason for including department heads in the operations budgeting process is that: a. the department heads will generally be more motivated if they are involved in preparing the budget. b. it will be a boost to their egos. c. they are the only employees who are able to provide meaningful budget data. d. the general manager is usually overburdened with more pressing responsibilities and is unable to prepare the entire budget alone. - Answers the department heads will generally be more motivated if they are involved in preparing the budget. Your company uses the following model to forecast breakfast meals in your hotel restaurant. Total breakfast covers = 250+.7(number of hotel guest) Your hotel has 750 rooms and your anticipated occupancy for June is 80%. If you forecast 1.4 guests per room, how many breakfast meals do you anticipate selling in June? a. 17,890 b. 25,450 c. 17,640 d. 12,850 - Answers 17,890 A time series approach to forecasting assumes that the value of a certain variable is a function of another variable. - Answers False What information is never included on a STAR report? a. Index numbers and Index Percent Changes b. Performance data for individual competitors c. The names of hotels included in the subject hotels competitive set d. Performance data for an industry segment relevant to the subject hotel - Answers Performance data for individual competitors A hotel has 1,000 rooms and the front desk manager projected that they would sell an average of 850 rooms per night for March. The budget standard for front desk clerks is 10 check ins per hour at an hourly rate of $12.50 per hour. During the month of March, front desk clerks actually checked in 27,000 rooms, worked 2,650 hours and were paid $12.65 per hour. What is the rate variance for front desk clerks? a. $397.50 favorable b. $397.50 unfavorable c. $395.25 favorable d. $395.25 unfavorable - Answers $395.25 unfavorable Which is not a competitor that appears on the monthly STAR report? a. A grouping of hotels STR picks for you based on criteria you give them