Chapter 10

Multiple Choice

Choose the letter of the best answer to the questions listed below.

1.Which of the following is not a basic truth about forecasts?

a.Forecasts rely on historical data.

b.Forecasts must be exact to be effective.

C.Forecasts involve the future.

d.Forecasts are best utilized as a guide.

Questions 2-8 are based on the following sales history information:

Willie's Hot Dogs had sales last year of $250,300 and a guest count of 76,079.

Sales this year were$280,750 with a guest count of 83,556.

2.What was Willie's dollar variance for sales?

a.$ 7,477

b.$159,635

C.S 30.450

d.$265,525

3.What was Willie's sales percentage variance?

a.89.15%

b.29.76%

c.30.40%

d.12.17%

4.What was Willie's guest count variance?

a. 6,328

b.8,645

C.7,477

d.7,034

5.What was Willie's guest count percentage variance?

a.9.83%

b. 6.48%

c.11.24%

d. 8.50%

6.Using 12% as an estimated increase% for next year,what is Willie's sales forecast for nextyear,based on this year's sales?

a.$366,098.00

b.$314,440.00

C.$305,877.13

d.$364,301.20

Using 10% as an estimated increase % for next year,what is Willie's guest count forecast for

next year,based on this year's count?

a. 98,034

b. 93,725

C.108,422

d.91,912

8.Using the sales and guest count forecasts for next year,what is Willie's average sales per

guest forecast for next year?

a.$3.73

b.$3.96

c.$3.42

d.$2.82

9.Which of the following characteristics do not apply to a hotel's occupancy forecast?

a.Helps improve employee scheduling

b.Shows guest arrival and departure patterns

C.Never exceeds 100%

d.Matches revenue dollar forecasts to pre-established budgets

10.Which of the following is not a characteristic of a hotel's dollar revenue forecast?

a.Helps manage the hotel's cash flows

b.Produces daily and weekly occupancy percentages

C.Estimates RevPAR

d.Matches revenue forecasts to pre-established budgets

11.How are forecasted adjustments to rooms sold or reserved at a hotel computed in calculatingoccupancy forecasts?

a.Add no-shows,add early departures,add stayovers

b.Add stayovers,subtract early departures,subtract overstays

C.Add stayovers,subtract overstays,subtract out-of-order rooms

d.Subtract no-shows,subtract early departures,add overstays

12.A guest who checks out of the hotel after his or her originally scheduled check-out date iscalled a(n)_

a.Stayover

b.Late departure

c.Overstay

d.Afterstay