Ramada Hotels Operates Hotels Throughout Canada

question 23

Multiple Choice

Ramada Hotels operates hotels throughout Canada. Which of the following is the best example of a potential bias associated with its operations?

• A) Managers assume that most travelers are interested in conducting business, rather than vacationing
• B) Managers learn that guests rarely stay longer than a week
• C) Managers find that last year's profits were below the industry average
• D) Managers are concerned because employee turnover increased during the last year

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Definitions:

Materials Standards

The expected cost and quantity of materials required for the production of goods, used as a benchmark for evaluating performance.

Labour Hours

The total number of hours worked by employees during a specific period, often used to measure labor input in producing goods or services.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected (or standard) costs for the achieved level of production.

Fixed Overhead Volume Variance

The difference between the budgeted and applied fixed overhead costs, attributed to variations in production volume.