Certified Dietary Manager Financial Management and Budgeting Questions and Answers

Question 1

A dietary department's monthly profit and loss (P&L) statement shows total revenue of $95,000.
The cost of food was $35,000, labor costs were $48,000, and other operating expenses totaled $7,000.
What was the department's net profit or loss for the month?

Accepted Answer

A $5,000 profit

Answer

A $12,000 loss

Answer

A $13,000 loss

Answer

A $47,000 profit

Question 2

A dietary manager is requesting funds to purchase a new blast chiller that costs $18,000 and is expected to last for 10 years. This type of large, long-term acquisition would be planned for in which type of budget?

Accepted Answer

Capital budget

Answer

Operating budget

Answer

Flexible budget

Answer

Master budget

Question 3

During one 40-hour work week, a long-term care facility produced 5,600 meals. The dietary staff worked a total of 700 hours during that week. What are the meals per labor hour (MPLH) for this period?

Accepted Answer

8.0

Answer

14.0

Answer

0.125

Answer

12.5

Question 4

A dietary manager uses the 'First-In, First-Out' (FIFO) method for inventory management and valuation. This method assumes that when an item is used, the cost assigned to it is based on the:

Accepted Answer

oldest units in inventory.

Answer

most recently purchased units.

Answer

average cost of all similar units.

Answer

units with the highest purchase price.

Question 5

A skilled nursing facility had a beginning food inventory of $22,000 on the first of the month. During the month, they purchased $40,000 worth of food. The ending inventory on the last day of the month was $18,000. If the total revenue for the month was $110,000, what was the food cost percentage?

Accepted Answer

40.0%

Answer

36.4%

Answer

54.5%

Answer

38.2%

Question 6

Which of the following is a primary strategy for effectively controlling labor costs in a foodservice department?

Accepted Answer

Improving efficiency through better workflow and staff training.

Answer

Purchasing only the highest quality ingredients.

Answer

Offering an extensive and complex menu.

Answer

Scheduling all staff for 8-hour shifts regardless of workload.

A dietary department's monthly profit and loss (P&L) statement shows total revenue of $95,000.The cost of food was $35,000, labor costs were $48,000, and other operating expenses totaled $7,000.What was the department's net profit or loss for the month?

A dietary department's monthly profit and loss (P&L) statement shows total revenue of $95,000.
The cost of food was $35,000, labor costs were $48,000, and other operating expenses totaled $7,000.
What was the department's net profit or loss for the month?