Home › MCQs › Tourism & Hospitality Management › Question #1632
Back to Questions
Tourism & Hospitality Management QUESTION #1632
Question 1
According to the Travel & Tour Operations course, 'tour costing' involves which categories of costs that must be identified and calculated?
  • Only accommodation and transport costs
  • Fixed and variable costs, direct and indirect costs, components of tour cost, factors affecting tour cost, and the procedure for cost determination leading to the final tour price✔️
  • Marketing and promotional costs only
  • Staff salaries and overhead costs only
Correct Answer Explanation
The Travel & Tour Operations course (Module 5: Tour Costing and Pricing) comprehensively covers: the concept of cost, fixed vs. variable costs, direct vs. indirect costs, components of tour cost, factors affecting tour cost, costing a tour package, the cost sheet, procedure for cost determination, calculation of tour price, and significance of profit margin — the full financial architecture of tour packaging.