Review Questions
1. What are the components of labor cost in the hotel industry?
2. What is the name of the external statement showing revenue and expenses and given to shareholders?
3. What are possible revenue sources for the Other Operated Departments line item?
4. What revenue sources might be included in the line item Rentals and Other Income?
5. What types of personnel might be in the A&G department?
6. What is a direct expense?
7. What types of personnel might be in the sales and marketing department?
8. Which department will get charged for repairs to furniture in the Rooms department?
9. What is the name of the internal income statement given to managers?
10. What four specific expenses are purposely excluded from the internal income statement?
11 Which departments are listed as Undistributed Operating Expenses on the internal income statement?
12. What is the line item called Replacement Reserves on the internal income statement?