Budgeting, Cost Control, and Inventory Management
Know the cost structure
Candidates must understand the housekeeping budget as a set of controllable and non-controllable lines. Controllable costs include cleaning chemicals, guest supplies, linen replacement, and uniform costs; non-controllable costs include payroll taxes and benefits at the property level. Know how cost per occupied room is calculated and why it is the preferred benchmark, since it normalizes for occupancy swings that would distort a flat monthly budget.
Inventory discipline
Understand par levels, reorder points, and the difference between physical counts and book inventory. The classic trap is treating a favorable variance as good when it actually signals shrinkage or hoarding. Another trap is ordering in bulk to capture a discount without checking storage capacity and shelf life, which converts a price saving into waste. Know how to read a linen loss report and distinguish normal attrition from theft or misuse.
Worked example
If guest amenities cost 18,000 in a month with 9,000 occupied rooms, the cost per occupied room is 2.00. If the budget was 2.20, the property is 0.20 favorable per room, or 1,800 favorable overall. Before celebrating, check whether the variance came from genuine efficiency or from under-supplying rooms.
Rule of thumb
Investigate any variance beyond roughly five percent in either direction, because both overspend and underspend usually have a story behind them.