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

A variance report compares planned (budgeted) figures against actual results, highlighting areas where spending exceeded or fell below projections.

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

Standardized recipes with portion controls ensure consistent food quality while maintaining predictable costs per serving.

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

Food cost percentage is calculated by dividing total food cost by total food revenue (or the monetary value of meals served), then multiplying by 100.

Question 4

Which inventory method assumes the oldest products are used first?

Accepted Answer

FIFO (First In, First Out)

Answer

FIFO (First In, First Out) assumes that the oldest inventory items are used or sold first, which aligns with proper food rotation practices.

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

Break-even analysis identifies the volume of activity at which total revenue exactly covers all fixed and variable costs, resulting in neither profit nor loss.

Certified Dietary Manager Test Practice Test

Certified Dietary Manager Test Practice Test

CDM Financial Management and Budgeting 2