A Guest with a One-Night Guaranteed Reservation at a Hotel

question 32

Multiple Choice

A guest with a one-night guaranteed reservation at a hotel did not show. The hotel was not able to rent the room to someone else. For which of the following is the guest liable to the hotel?

• A) Loss of goodwill
• B) The full hotel bill
• C) Punitive damages
• D) None of the above

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Definitions:

Variable Costing

An accounting method that only considers variable costs in product costing and decision making, excluding any fixed costs.

Factory Supervisor

An individual responsible for overseeing the day-to-day operations within a manufacturing facility, ensuring production targets and quality standards are met.

Machine Operator

A machine operator is a person who operates equipment and machinery in manufacturing or production settings, monitoring and controlling processes.

Variable Costing

An accounting method that only includes variable costs (costs that vary with production levels) in product costs and treats fixed costs as period costs expensed in the period incurred.