CDM CDM Inventory, Costing & Business Operations

Question 1

What is the formula for calculating the food cost percentage of a doughnut product?

Accepted Answer

(Ingredient cost ÷ Selling price) × 100

Answer

Food cost percentage is calculated by dividing the total ingredient cost by the selling price and multiplying by 100 to express it as a percent.

Question 2

In a bakery, what does FIFO stand for and why is it used?

Accepted Answer

First In, First Out — to ensure oldest inventory is used before newer stock

Answer

FIFO ensures that the oldest ingredients are used first, reducing spoilage, waste, and the risk of using expired products.

Question 3

Which document is used to record the amount of each ingredient used in a standard batch of doughnuts?

Accepted Answer

A standardized recipe card

Answer

A standardized recipe card specifies exact ingredient quantities per batch, ensuring consistency and enabling accurate food cost calculations.

Question 4

What does 'yield percentage' refer to when calculating ingredient costs for doughnuts?

Accepted Answer

The usable portion of an ingredient after trimming or processing compared to the as-purchased amount

Answer

Yield percentage accounts for the loss that occurs during ingredient preparation, ensuring accurate cost calculations based on usable ingredient amounts.

Question 5

A baker produces 120 doughnuts per batch and the total ingredient cost is $36. What is the ingredient cost per doughnut?

Accepted Answer

$0.30

Answer

Dividing the total batch cost ($36) by the number of units (120) gives an ingredient cost of $0.30 per doughnut.

(CDM) Certified Doughnut Maker Practice Test

(CDM) Certified Doughnut Maker Practice Test

CDM CDM Inventory, Costing & Business Operations