CCA CCA Financial Management & Budgeting 2

Question 1

Labor cost percentage is typically expressed as a percentage of:

Accepted Answer

Total revenue

Answer

Total food cost

Answer

Number of employees

Answer

Payroll tax liabilities

Question 2

Which financial document summarizes assets, liabilities, and equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Budget variance report

Question 3

What is the primary purpose of a food cost variance report?

Accepted Answer

To compare actual food cost to budgeted food cost

Answer

To schedule employee shifts

Answer

To track customer satisfaction scores

Answer

To project next quarter's revenue

Question 4

A CCA wants to reduce prime cost. Prime cost is the sum of:

Accepted Answer

Food cost plus labor cost

Answer

Food cost plus beverage cost

Answer

Labor cost plus overhead

Answer

Food cost plus utilities

Question 5

An accounts payable aging report helps a culinary administrator:

Accepted Answer

Track overdue payments owed to vendors

Answer

Monitor employee overtime hours

Answer

Calculate daily food cost

Answer

Schedule equipment maintenance

Question 6

Depreciation of kitchen equipment is recorded because:

Accepted Answer

It reduces taxable income and reflects asset value decline over time

Answer

It represents cash paid to vendors for repairs

Answer

It increases the value of fixed assets on the balance sheet

Answer

It tracks employee training costs