CFSP Financial Management 3

Question 1

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

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

Total revenue ÷ (number of seats × operating hours)

Answer

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

Question 3

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

Accepted Answer

Actual costs versus budgeted costs to identify deviations

Answer

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

Question 4

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

Accepted Answer

Straight-line depreciation

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

(CFSP) Certified Foodservice Professional Practice Test

(CFSP) Certified Foodservice Professional Practice Test

CFSP Financial Management 3