CCA CCA Financial Management & Budgeting 2

Question 1

Labor cost percentage is typically expressed as a percentage of:

Accepted Answer

Total revenue

Answer

Labor cost percentage is calculated by dividing total labor costs by total revenue and multiplying by 100.

Question 2

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

Accepted Answer

Balance sheet

Answer

The balance sheet presents a snapshot of assets, liabilities, and owner's equity at a specific date.

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

A food cost variance report identifies the difference between actual and budgeted food costs so management can investigate discrepancies.

Question 4

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

Accepted Answer

Food cost plus labor cost

Answer

Prime cost equals total food cost plus total labor cost and is typically the largest controllable expense in foodservice.

Question 5

An accounts payable aging report helps a culinary administrator:

Accepted Answer

Track overdue payments owed to vendors

Answer

Accounts payable aging categorizes outstanding vendor invoices by how long they have been unpaid, helping prioritize payments.

(CCA) Certified Culinary Administrator Practice Test