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 budgeting method builds a new budget from zero each period, requiring justification for every expense?
Answer: Zero-based budgeting
Zero-based budgeting starts from a zero base and requires every expense to be justified for each new budget period.
Food cost percentage is calculated by dividing cost of food sold by:
Answer: Total food revenue
Food cost percentage = (cost of food sold ÷ total food revenue) × 100.
A CCA reviewing a P&L statement notices EBITDA. What does EBITDA measure?
Answer: Earnings before interest, taxes, depreciation, and amortization
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, reflecting core operational profitability.
The break-even point for a foodservice operation is where:
Answer: Total revenue equals total costs
Break-even occurs when total revenue exactly equals total costs, resulting in neither profit nor loss.
Which cost type remains constant regardless of the volume of meals produced?
Answer: Fixed cost
Fixed costs such as rent and salaried wages do not change with the volume of meals produced.
A contribution margin is best defined as:
Answer: Selling price minus variable cost per unit
Contribution margin is calculated as selling price minus variable cost per unit, showing how much each unit contributes to covering fixed costs.