Question

When performing a benchmarking analysis of a hotel operating statement, which of the following measures of financial comparison would typically not be used?

Answer 1

Question:

When performing a benchmarking analysis of a hotel operating statement, which of the following measures of financial comparison would typically not be used?

a) Dollar per available room

b) Dollar per occupied room

c) Percent of revenue ( or departmental revenue)

d) Percent or original construction cost

Answer:

d) Percent or original construction cost

Explanation:

Benchmarking analysis: Benchmarking analysis is a method of comparing organisation or business process and performance with other companies to  meet the industry best practices. This is a performance measure used in determining the quality, time and cost.

Operating statement: This is a financial statement that contains the business activity results for a specific period time, this entails the  income statement, earnings report, profit and loss statement. This statement is also known as profit and loss statement.

Therefore from the list of options provided above, Percent or original construction cost would typically not be used as a measure of financial comparison when performing a benchmarking analysis of a hotel operating statement.