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Finance 350 Quiz Review Flashcards | StudBud
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Finance 350 Quiz Review
Finance 350 Quiz Review
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Answers
1
What does variance analysis compare?
Debt versus equity
Fixed and variable costs
Revenues and expenses
Forecasted numbers with actual results
2
Why is monitoring a budget critical in hospitality management?
To reduce customer satisfaction
To ensure expenses stay within projections
To increase costs
To decrease profitability
3
Which type of cost remains constant regardless of the business’s output?
Variable cost
Semi-variable cost
Fixed cost
Marginal cost
4
Which of the following pricing methods involves analyzing competitor pricing?
Market-based pricing
Cost-plus pricing
Penetration pricing
Value-based pricing
5
What is the formula for Net Income?
Expenses / Revenue
Revenue - Expenses
Revenue x Expenses
Revenue + Expenses
6
The use of standardized costs is common in which type of business activity?
Human resources
Marketing
Production
Customer service
7
What does standard costing help with?
Eliminating variable costs
Expanding the product line
Highlighting differences between actual and forecasted costs
Reducing employee benefits
8
What is the term used for the amount of revenue generated per customer visit in a restaurant?
Net income per guest
Contribution margin
Total revenue per visit
Average guest check
9
Which of the following is a common component of variable overhead costs?
Indirect materials
Rent
Salaries for administrative staff
Insurance
10
Which financial statement is a ‘snapshot’ of a business’s financial position?
Income Statement
Statement of Retained Earnings
Cash Flow Statement
Balance Sheet
11
Which pricing method focuses on what the customer is willing to pay based on the perceived value of the product?
Penetration pricing
Cost-plus pricing
Market-based pricing
Value-based pricing
12
What does RevPAR stand for?
Revenue Per Available Reservation
Revenue Per Available Room
Revenue Per All Rooms
Revenue Per Actual Reservation
13
The first step in developing a cost control system is:
Cost estimating
Resource planning
Budget creation
Inventory management
14
What does a Contribution Margin Ratio express?
The percentage of revenue left after variable costs
Total revenue minus fixed costs
Total fixed costs
The balance between assets and liabilities
15
Which ratio helps in comparing the profitability of different products?
Fixed cost ratio
Contribution Margin Ratio
Debt-to-equity ratio
Expense ratio
16
What does the term “overhead” refer to in business costs?
Costs directly tied to production
Employee bonuses
Revenue generated from sales
Ongoing expenses necessary to operate the business
17
What is one advantage of cost-plus pricing?
It increases customer demand
It reduces fixed costs
It ensures operating costs are covered
It allows flexibility in pricing
18
What is the primary purpose of a cost control system?
Expand the business
Improve employee satisfaction
Reduce inefficient business expenses
Increase sales
19
Finance is?
The study of money and assets
Planning of future financial actions
All of the above
Looks forward
20
Why is tracking food cost percentages important in restaurant management?
It monitors cash flow
It helps control operating expenses and ensure profitability
It increases customer satisfaction
It measures employee performance
21
Which of the following financial statements tracks financial performance over a specific time period?
Cash Flow Statement
Statement of Owner's Equity
Income Statement
Balance Sheet
22
Which of the following is an example of a fixed cost?
Rent
Labor costs
Marketing expenses
Raw materials
23
What is the primary purpose of setting a sales forecast?
To calculate expenses
To determine fixed costs
To analyze competitor prices
To estimate future revenue
24
Which of the following is an example of a fixed overhead cost?
Employee wages
Machine maintenance
Utilities
Rent
25
Which of the following is a benefit of a cost control system?
Reducing operational complexity
Increasing the number of employees
Highlighting costly and efficient areas
Eliminating taxes
26
Which statement best describes the Cash Flow Statement?
It tracks company assets
It summarizes cash inflows and outflows
It shows the company’s net income
It measures profitability
27
What is the key objective of menu engineering in hospitality?
To reduce food costs
To maximize profitability and popularity of menu items
To attract more customers
To simplify operations
28
Which of the following is an example of a variable cost in a restaurant?
Lease payments
Rent
Food ingredients
Insurance
29
Why is RevPAR an important metric for hotels?
It shows the overall room sales performance by combining ADR and occupancy
It indicates the profitability of each individual room
It calculates the total number of rooms sold
It measures the total sales from room service and food & beverage
30
Which of the following is NOT a common source of costs in hospitality and tourism businesses?
Labor costs
Rent and utilities
Transportation
Patent filing fees
31
What does ADR stand for in the hospitality industry?
Average Debt Ratio
Actual Direct Revenue
Annual Debt Rate
Average Daily Rate
32
Which of the following is included in the cost-based pricing method?
Analyzing competitor prices
Estimating customer willingness to pay
Examining market conditions
Adding a markup to the cost of goods
33
What does IoT stand for?
Intranet of Things
Internet of Technology
Internet of Things
Interest of Things
34
What is the role of variance analysis in a cost control system?
Expanding the business
Increasing overhead costs
Analyzing differences between budgeted and actual numbers
Increasing the labor cost percentage
35
What method is often used for small business pricing?
Market-based pricing
Target costing
Value-based pricing
Cost-plus pricing
36
Which factor can increase a hotel's RevPAR?
Increasing ADR while keeping occupancy constant
All of the above
Increasing occupancy while keeping ADR constant
Increasing both ADR and occupancy
37
Which type of cost does not change with the level of business activity?
Variable cost
Fixed cost
Marginal cost
Semi-variable cost
38
Which component of a labor cost control system tracks employee work hours and breaks?
Payroll
Time and attendance management
Employee scheduling
Performance monitoring
39
Which of the following is NOT one of the steps of the budgeting process
Gathering Info
Setting goals
Creating forecasts
Make no change when needed
40
Which of the following is NOT a use of a budget?
Decision making
Performance evaluation
Historical analysis
Resource allocation
41
What key financial tool is used to evaluate the difference between budgeted and actual figures?
Liquidity ratio
Debt-to-equity ratio
Variance analysis
Profitability index
42
Which of the following is a component of the Income Statement?
Equity
Liabilities
Revenues
Assets
43
What is the main advantage of using cost control system rules?
They provide consistent and efficient practices
They eliminate all costs
They reduce employee benefits
They increase revenue directly
44
What is the main purpose of a budget?
To create financial projections
To report financial results
To increase expenses
To plan and allocate resources
45
Why is contribution margin important for menu engineering?
It measures popularity alone
It reflects fixed costs
It indicates the profitability of each menu item
It shows total revenue
46
Which aspects of the business need to be controlled?
Labour Management
Risk Management
Inventory Management
All of the above
