CDM CDM Inventory, Costing & Business Operations 2

Question 1

Which factor most directly affects the shelf life of finished doughnuts in a retail display case?

Accepted Answer

Humidity and temperature of the display environment

Answer

High humidity causes glazes to dissolve and dough to become soggy, while improper temperature accelerates staling and microbial growth.

Question 2

What is 'contribution margin' in the context of doughnut pricing?

Accepted Answer

Selling price minus variable ingredient and production costs

Answer

Contribution margin is the amount each unit sale contributes toward fixed costs and profit after subtracting variable costs.

Question 3

When ordering ingredients for a busy holiday weekend, which approach best minimizes waste while preventing stockouts?

Accepted Answer

Order based on sales history from the same period in prior years plus a safety buffer

Answer

Historical sales data provides the most reliable forecast for seasonal demand, and a safety buffer accounts for unexpected demand spikes.

Question 4

What is the main reason bakeries track 'waste' separately from 'usage' in inventory records?

Accepted Answer

To identify inefficiencies and reduce unnecessary ingredient loss

Answer

Tracking waste separately allows management to pinpoint where ingredients are being lost unnecessarily and implement corrective measures to improve profitability.

Question 5

In bakery cost accounting, what does 'overhead' typically include?

Accepted Answer

Rent, utilities, equipment depreciation, and insurance

Answer

Overhead comprises all fixed and semi-fixed indirect costs—such as rent, utilities, and depreciation—that are not directly tied to a specific product batch.

(CDM) Certified Doughnut Maker Practice Test

(CDM) Certified Doughnut Maker Practice Test

CDM CDM Inventory, Costing & Business Operations 2