To apply CVP analysis in the hotel industry,which of the following is the most important measure of output?
A) number of room-nights occupied
B) number of visitors
C) number of dishes on the menu
D) number of employees

Question

Quizplus · Accepted Answer

In the hotel industry, the number of room-nights occupied is the most important measure of output as it directly relates to revenue generation. CVP analysis helps to understand the relationship between revenue, costs, and volume of output, and in the case of the hotel industry, the number of room-nights occupied is directly correlated to revenue. Therefore, it is the best choice for applying CVP analysis in this industry. B, C, and D are not directly related to revenue generation and do not provide a clear measure of output for the industry.

To Apply CVP Analysis in the Hotel Industry,which of the Following