Final Study Guide - Lecture 8 Questions 1 What is the most important short-term planning function performed by a manager What is the most important

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Lecture 8 Questions 1. What is the most important short-term planning function performed by a manager? What is the most important long-term planning function performed by a manager? a. Short Term: Forecasting b. Long-Term: Budgeting 2. What happens if your forecast is off? a. If fewer rooms are occupied than forecast i. Hotel is overstaffed ii. Labor costs are high iii. Costs exceed budget iv. Short-term profits suffer b. If more rooms are occupied than forecast i. Hotel understaffed ii. Service suffers iii. Long term revenue/profits suffer iv. 3. Identify three functional areas in the hotel and explain how managers in these areas use hotel occupancy forecasts 4. How does a manager go about creating a budget? What is the first step in the budget process? a. Begins with forecasted occupied rooms and ADR for the year b. Estimates related direct and variable expenses i. Cost per occupied room
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ii. % or room revenue 5. What is accounting’s role in the budgeting process? a.
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This note was uploaded on 09/10/2008 for the course H ADM 105 taught by Professor Rmccarthy during the Spring '05 term at Cornell University (Engineering School).

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Final Study Guide - Lecture 8 Questions 1 What is the most important short-term planning function performed by a manager What is the most important

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