Question 1

Which of the following is not an example of a sector that can be classified within the hospitality industry?

Accepted Answer

All the options listed (cruise liners, country and sports clubs, pubs and bars, fast-food outlets) can indeed be classified within the hospitality industry, as they all provide services related to leisure, entertainment, and comfort to guests or customers.

Question 2

Which of the following statements is not true?

Accepted Answer

High functional interdependency actually makes departmental accountability more challenging as departments rely on each other and an issue in one department can affect the others.

Question 3

Which of the following is not a key characteristic of the hotel industry?

Accepted Answer

All of the above are key characteristics of the hotel industry.

Question 4

Which of the following is not a generally acknowledged sales volatility challenge that is evident in the hotel industry?

Accepted Answer

Economic cycle volatility, seasonal sales volatility, weekly sales volatility, and intra-day sales volatility are all acknowledged sales volatility challenges in the hotel industry. However, staff turnover does not directly contribute to sales volatility, although it can indirectly impact sales if there is a lack of trained staff available to handle busy periods.

Question 5

Which of the following is not a true statement?

Accepted Answer

The statement that activities conducted in the hotel industry are not labor intensive is not a true statement. In fact, the hotel industry is known for its labor-intensive operations, such as housekeeping, front desk operations, and food and beverage service.

Question 6

Which of the following statements is untrue?

Accepted Answer

The accounting system primarily focuses on financial transactions and reporting, rather than monitoring the performance of all departments within hotels, which would involve a broader range of systems including operational and management information systems.

Question 7

Which of the following is not a true statement?

Accepted Answer

Financial accounting concerns the preparation of financial reports for external users on a periodic basis, usually quarterly or annually. Monthly reports may also be prepared, but it is not the norm.

Question 8

In the context of hotel management, which of the following does not represent an example of high perishability with respect to a sales opportunity?

Accepted Answer

Perishability in hotel management refers to the inability to store products or services for sale at a later date, leading to potential revenue loss if not sold in time. A specific room night and a large conference room for a specific day are examples of high perishability because if they are not booked, the opportunity to generate revenue from them for that specific time is lost forever. A delivery of strawberries also has high perishability due to their short shelf life. However, bottled beer typically has a much longer shelf life, making it less perishable compared to the other examples, as it can be stored and sold over a longer period without significant quality loss.

Question 9

Which of the following is not a true statement?

Accepted Answer

The statement that most business sectors experience a relatively high degree of economic cycle related sales volatility is not true. Many business sectors, such as healthcare and utilities, are not as affected by economic cycles and experience lower levels of sales volatility.

Question 10

The Uniform System of Accounts:

Accepted Answer

All of the statements are accurate descriptions of the Uniform System of Accounts. It is a standardized accounting system that has been developed over many years with significant contributions from various parties, including industry associations, consultants, and accounting professionals. Its use promotes consistency in financial reporting across hotels, which facilitates benchmarking and performance analysis. It is also a common point of reference within hotel groups, and it can be adopted by any business in the hotel industry that seeks a reliable accounting framework.

Question 11

Which of the following statements is not true:

Accepted Answer

The statement that the hospitality industry encompasses a narrow range of activities and types of organisations is not true. In fact, the hospitality industry is broad and diverse, encompassing businesses that provide lodging, food and beverage service, events and entertainment, tourism and travel, and other related services.

Question 12

Which of the following statements is not true:

Accepted Answer

The statement "The uniform system of accounts signifies that all hotels should use the same management accounting system" is not true. While the uniform system of accounts is a recommended accounting system for hotels, it does not signify that all hotels must use the same management accounting system. There may be variations in accounting systems based on the specific needs and characteristics of each hotel.

Question 13

Which of the following is not a true statement?

Accepted Answer

Management accounting would not be responsible for determining the safety of extending credit to a customer. This would fall under credit analysis or risk management.

Question 14

Which of the following statements is not true:

Accepted Answer

Bar operations are typically more flexible and less structured than scheduled batch production, so the statement is not true. The other statements are generally true and accurate.

Question 15

Which of the following statements is not true:

Accepted Answer

The statement that the uniform system of accounts is extensively used outside the hotel industry is not true. The system is specifically designed for the hotel industry and its application outside the industry would not be appropriate or relevant.

Question 16

Which of the following is not a true statement?

Accepted Answer

This statement is not true as budgeting is considered a key component of management accounting as it aids in decision making and control.

Question 17

Which of the following statements is not true?

Accepted Answer

Financial measures typically focus on symptoms rather than causes. They are outcome indicators that show the result of various actions and decisions, rather than the underlying factors that led to those outcomes.

Quiz 1: Introduction: Hospitality Decision Makers Use of Accounting

Which of the following is not an example of a sector that can be classified within the hospitality industry?

Which of the following statements is not true?

Which of the following is not a key characteristic of the hotel industry?

Which of the following is not a generally acknowledged sales volatility challenge that is evident in the hotel industry?

Which of the following is not a true statement?

Which of the following statements is untrue?

Which of the following is not a true statement?

In the context of hotel management, which of the following does not represent an example of high perishability with respect to a sales opportunity?

Which of the following is not a true statement?

The Uniform System of Accounts:

Which of the following statements is not true:

Which of the following statements is not true:

Which of the following is not a true statement?

Which of the following statements is not true:

Which of the following statements is not true:

Which of the following is not a true statement?

Which of the following statements is not true?