CFESA Business Operation 5

Question 1

Under which circumstance should a service technician collect payment at the time of service rather than invoicing later?

Accepted Answer

When company policy requires COD for new or credit-risk customers

Answer

COD (cash on delivery) policies for new or high-risk customers reduce the risk of uncollected accounts receivable.

Question 2

Which OSHA regulation is MOST relevant to technicians servicing commercial cooking equipment in a restaurant kitchen?

Accepted Answer

29 CFR 1910.147 — Control of Hazardous Energy (Lockout/Tagout)

Answer

Lockout/Tagout (29 CFR 1910.147) is the primary OSHA standard governing de-energization of equipment before servicing.

Question 3

A service company wants to set labor rates that ensure profitability. Which factor is MOST important to include in the rate calculation?

Accepted Answer

Fully loaded technician cost including wages, benefits, taxes, and allocated overhead

Answer

Fully loaded cost accounting ensures labor rates cover all actual costs and generate sufficient profit margin.

Question 4

What is the primary function of a 'return merchandise authorization' (RMA) number in parts management?

Accepted Answer

It is a supplier-issued tracking number required to return defective or incorrect parts

Answer

An RMA number is issued by the supplier to authorize and track a parts return, ensuring proper credit or replacement processing.

Question 5

When a service company hires a new technician from a competitor, which precaution is MOST important regarding customer data?

Accepted Answer

Ensure the technician does not use or share confidential customer information from the previous employer

Answer

Using a competitor's confidential customer data constitutes misappropriation of trade secrets and creates significant legal liability.

CFESA - Commercial Food Equipment Service Association Practice Test