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CMA Intermediate · Cost Accounting · Operating Costing - Transport, Hotel and Healthcare

A hotel has 40 rooms and operates for 30 days in a month. In that month, 960 room-days were occupied. What is the occupancy percentage?

Occupancy is 80 percent. Available room-days are 40 rooms times 30 days, giving 1,200, and 960 occupied room-days divided by 1,200 gives 0.80.

  1. A75%
  2. B80%Correct
  3. C85%
  4. D96%

Explanation

Available room-days = 40 x 30 = 1,200. Occupancy = 960/1,200 x 100 = 80%. The 75% figure wrongly uses 1,280 as the base, and 96% divides by 1,000.

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