Practice Test Geeks(CFSP) Certified Foodservice Professional Practice Test
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Financial Management Flashcards

7 cards from real CFSP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Management flashcards as text

  1. What is 'seat turnover' and why is it important in foodservice financial management?

    Answer: The number of times a seat is occupied during a meal period; it directly impacts revenue capacity

    Seat turnover measures how many times each seat generates a cover per service period, and higher turnover directly increases potential revenue without adding capacity.

  2. What is the formula for calculating RevPASH (Revenue Per Available Seat Hour)?

    Answer: Total revenue ÷ (number of seats × operating hours)

    RevPASH divides total revenue by the product of available seats and hours of operation, providing a standardized measure of revenue-generating efficiency.

  3. In foodservice cost control, what does 'variance analysis' compare?

    Answer: Actual costs versus budgeted costs to identify deviations

    Variance analysis identifies the difference between planned (budgeted) figures and actual results, helping managers pinpoint areas requiring corrective action.

  4. Which depreciation method allocates equal expense amounts across each year of an asset's useful life?

    Answer: Straight-line depreciation

    Straight-line depreciation spreads the cost of an asset evenly over its useful life by deducting the same amount each year.

  5. What is the significance of 'days sales outstanding' (DSO) for a foodservice catering company?

    Answer: It measures the average number of days it takes to collect payment after a sale

    DSO reveals how long a catering business waits on average to receive payment from clients, affecting cash flow management and working capital needs.

  6. What is a 'pro forma' financial statement in the context of a new restaurant opening?

    Answer: A projected financial statement based on assumptions about future performance

    Pro forma statements are forward-looking projections that estimate future revenues, costs, and profitability based on assumptions and business plans.

  7. A restaurant's prime cost is $45,000 on revenues of $90,000. What is the prime cost percentage?

    Answer: 50%

    Prime cost percentage = Prime Cost ÷ Total Revenue × 100 = $45,000 ÷ $90,000 × 100 = 50%.