CCA Financial Management & Budgeting Flashcards
6 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCA Financial Management & Budgeting flashcards as text
Labor cost percentage is typically expressed as a percentage of:
Answer: Total revenue
Labor cost percentage is calculated by dividing total labor costs by total revenue and multiplying by 100.
Which financial document summarizes assets, liabilities, and equity at a specific point in time?
Answer: Balance sheet
The balance sheet presents a snapshot of assets, liabilities, and owner's equity at a specific date.
What is the primary purpose of a food cost variance report?
Answer: To compare actual food cost to budgeted food cost
A food cost variance report identifies the difference between actual and budgeted food costs so management can investigate discrepancies.
A CCA wants to reduce prime cost. Prime cost is the sum of:
Answer: Food cost plus labor cost
Prime cost equals total food cost plus total labor cost and is typically the largest controllable expense in foodservice.
An accounts payable aging report helps a culinary administrator:
Answer: Track overdue payments owed to vendors
Accounts payable aging categorizes outstanding vendor invoices by how long they have been unpaid, helping prioritize payments.
Depreciation of kitchen equipment is recorded because:
Answer: It reduces taxable income and reflects asset value decline over time
Depreciation allocates the cost of an asset over its useful life and reduces taxable income while reflecting the asset's declining value.