Dividing Room Revenue by the Number of Rooms Available Is

question 50

Multiple Choice

Dividing room revenue by the number of rooms available is called:

• A)rev par
• B)average daily rate
• C)rooms occupancy percentage
• D)rack rate

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Definitions:

Allocated Fixed Costs

Fixed costs that are assigned or distributed to various departments, products, or activities based on specific criteria.

Net Income

The total earnings of a company after subtracting all expenses from its total revenues; also known as net profit.

Income

The amount of money received by an individual or business in exchange for providing a good or service or through investing capital.

Loss

A financial term representing the amount by which expenses exceed revenues.