Test Bank to accompany Accounting Essentials for Hospitality Managers Chapter 1: Introduction: Hospitality Decision Makers’ Use of Accounting 1. Which of the following is not an example of a sector that can be classified within the hospitality industry? A. Cruise liners B. Country and sports clubs C. Pubs and bars D. Fast-food outlets E. All of the above can be classified within the hospitality industry 2. Which of the following statements is not true? A. Designing a large hotel’s organisational structure and accounting system is complicated by the need to co-ordinate a range of disparate functions that typically include the provision of accommodation, restaurant and bar facilities. B. Hotels can be distinguished from most other service sectors as the location of the service provision is also the place where the customer purchases and consumes the services offered. C. High functional interdependency facilitates departmental accountability. D. The nature of management decision making in connection with selling rooms in a hotel can be likened to the sale of seats in the airline or entertainment industries. E. Hotels’ high sales volatility makes accurate budgeting more challenging. 3. Which of the following is not a key characteristic of the hotel industry? A. High sales volatility. B. High product perishability. C. High proportion of fixed costs. D. High proportion of labour intensive activities. E. All of the above are key characteristics of the hotel industry 4. Which of the following is not a generally acknowledged sales volatility challenge that is evident in the hotel industry? A. Economic cycle volatility B. Seasonal sales volatility C. Staff turnover sales volatility D. Weekly sales volatility E. Intra-day sales volatility