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CHAPTER 9
OPERATIONS BUDGETING
TRUE OR FALSE QUESTIONS
(Correct answer indicated by T for True and F for False answers)
with forecast figures.
is little reason to spend time and money on budgeting.
revenue is built.
can be ignored.
taken into consideration are the number of seats, seat turnover rate, and average check.
can be ignored.
be calculated as a percent of food sales revenue.
of inflation.
is a form of ZBB.
activities and budget and not on broad percentage increases.
and actual results.
down into a price variance and a sales volume variance.
customers were 900 with an average check of $12.50. The price variance will be $250
favorable.
Actual results showed 3,100 rooms occupied with a cleaning cost of $4.05 per room;
there is a sales volume variance of $200 unfavorable.
doing their job.
MULTIPLE CHOICE QUESTIONS
(Correct answer indicated by asterisk)
1. Short-term budgets differ from long-term budgets in that a short-term budget:
2. A capital budget is one:
3. A flexible budget is one:
4. The budget preparation procedure:
5. An advantage of budgeting is that:
6. One of the steps in the budget cycle is to:
7. Limiting factors in budgeting are factors that:
8. If restaurant has budgeted 1,000 customers at an average check of $9.00 and actual customers
were 800 with an actual average check of $9.50, then:
9. Derived demand is demand:
10. A restaurant has 125 seats with an average check of $8.00 and a daily seat turnover of 2.5. It
is open 5 days a week and the average check is forecast to increase by 10% in the next year.
Next year’s budgeted sales revenue will be:
11. When departmental budgets are increased each year by a flat percentage rate, this is known
as:
12. Which of the following is not true of ZBB?
13. Variance analysis is a:
14. A banquet department’s annual budgeted sales revenue was based on 45,000 guests at an
average check of $10.00. Actual figures were 47,500 guests at a $9.50 average check. The
15. The general equation for a moving-average forecast that uses n for the number of periods is:
