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Le Pavilion Is a Historic Hotel Just Outside of Melbourne

Question 38

Multiple Choice

Le Pavilion is a historic hotel just outside of Melbourne. It is owned by Refined Hotels, which operates additional properties in Sydney, Brisbane and Perth. Le Pavilion has 9 floors, with approximately 20 rooms per floor. Facilities also include a workout room, restaurant, and pool. The hotel is organised in 5 departments: front desk, engineering, housekeeping, food & beverage, and customer relations. As part of its operation, Le Pavilion regularly incurs the following costs: General manager's salary
Housekeeping supplies
Utility costs
Depreciation on workout room equipment
Advertising
Food and beverage costs
Depreciation on restaurant equipment
Advertising for the Refined Hotels chain is best described as a(n)


A) Facility-sustaining cost
B) Organisation-sustaining cost
C) Product-sustaining cost
D) Batch-level cost

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