Le Château Joyal is an historic hotel in the heart of old Quebec City. It is owned by Riel Hotels, which operates additional properties in Halifax, Montreal, and Winnipeg. Le Château Joyal has 9 floors, with approximately 20 rooms per floor. Facilities also include a workout room, restaurant, and pool. The hotel is organized into 5 departments: front desk, engineering, housekeeping, food & beverage, and customer relations. As part of its operation, Le Château Joyal regularly incurs the following costs:
General manager's salary
Housekeeping supplies
Utility costs
Amortization on workout room equipment
Advertising
Food and beverage costs
Amortization on restaurant equipment
Which cost listed above is most likely to be a customer-sustaining cost?
A) Amortization on workout room equipment
B) Utility costs
C) Housekeeping supplies
D) General manager's salary

Question

Quizplus · Accepted Answer

Amortization on workout room equipment is a customer-sustaining cost because it is a cost that is incurred to maintain the quality of the hotel's facilities and amenities, which are essential to attracting and retaining customers.

Le Château Joyal Is an Historic Hotel in the Heart