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
Which pricing strategy sets menu prices based on the perceived value to the customer rather than just cost?
Answer: Value-based pricing
Value-based pricing sets prices according to what the target customer perceives the product is worth, not solely on production cost.
Inventory turnover rate in foodservice indicates:
Answer: How quickly inventory is used and replenished
Inventory turnover rate measures how many times inventory is completely used and replaced within a given period.
A rolling 13-week average is commonly used in foodservice budgeting to:
Answer: Smooth out seasonal fluctuations in revenue forecasting
A rolling 13-week average smooths short-term fluctuations, providing a more stable baseline for revenue and cost forecasting.
What does 'accrual accounting' mean in a culinary operation context?
Answer: Revenue and expenses are recorded when earned or incurred, regardless of cash flow
Accrual accounting records revenues and expenses when they are earned or incurred, not necessarily when cash is received or paid.
A CCA reviewing the income statement sees a high overhead allocation. Overhead typically includes:
Answer: Indirect costs such as utilities, rent, and administrative expenses
Overhead refers to indirect operating costs such as utilities, rent, insurance, and administrative expenses that support the operation.
Which metric measures profit remaining after all operating expenses are subtracted from gross profit?
Answer: Net operating income
Net operating income (or operating profit) is gross profit minus all operating expenses, showing the profitability of core operations.