CDM Financial Management and Budgeting 2

Question 1

Which financial document compares budgeted amounts to actual expenditures over a specific period?

Accepted Answer

Variance report

Answer

Income statement

Answer

Balance sheet

Answer

Cash flow statement

Question 2

What is the most effective method for controlling food costs in a dietary department?

Accepted Answer

Implementing standardized recipes with portion controls

Answer

Purchasing the cheapest ingredients available

Answer

Reducing the number of menu items offered

Answer

Eliminating snacks between meals

Question 3

A dietary department's food cost percentage is calculated by dividing food cost by what value?

Accepted Answer

Revenue or total meals served value

Answer

Total department budget

Answer

Labor costs

Answer

Operating expenses

Question 4

Which inventory method assumes the oldest products are used first?

Accepted Answer

FIFO (First In, First Out)

Answer

LIFO (Last In, First Out)

Answer

Weighted average

Answer

Specific identification

Question 5

What does a break-even analysis determine for a dietary department?

Accepted Answer

The point at which total revenue equals total costs

Answer

The maximum number of meals that can be produced

Answer

The ideal staffing ratio per meal

Answer

The optimal food cost percentage

Question 6

Which budget type starts from zero each period and requires justification for every expense?

Accepted Answer

Zero-based budget

Answer

Incremental budget

Answer

Capital budget

Answer

Flexible budget