Certified Facility Manager (CFM) Practice Exam

What are the two primary facility-related operating expenses for a hospitality business?

1. Labor costs and supplies

2. Property operation and management and utilities

3. Marketing and maintenance

4. Repairs and capital expenditures

The correct answer is: Property operation and management and utilities

The two primary facility-related operating expenses for a hospitality business are property operation and management, and utilities. These expenses are crucial as they directly affect the overall functionality and comfort of the facility, which are vital for guest satisfaction and business success. Property operation and management encompass a wide range of expenses related to the day-to-day running of the facility, including staff salaries, housekeeping, and maintenance services, which are essential to maintaining a welcoming environment for guests. Utilities include essential services such as water, electricity, and gas, which are necessary for the operation of the facility and influence both guest experience and operational efficiency. These costs represent the foundational elements of running a hospitality business, as they ensure that the facility is operational and well-managed, ultimately impacting profitability and service quality. Other options, while important in the context of business operations, do not represent the primary ongoing expenses directly related to facility operations in this sector.