Finance Flashcards
Financial management
Defining the goals and program objectives for the nutrition and food service programs
Variance
B - A / A x 100
Productivity
Inputs to outputs ratio
GAAP
Generally accepted accounting principles
Standard of guidelines for financial accounting established by the GASB (governmental accounting standards board)
Benchmarking
Searching for best practices, innovative ideas, highly effective operating procedures that lead to superior performance
Workload units
Patient days, admissions, discharges
Acute care patient meals per day
2
Skilled nursing patient meals per day
3
Psych, rehab, chem dependency meals per day
3.35
School meal equivalents
1 lunch =1 lunch
3 breakfasts = 2 lunches (2/3=0.67)
3 snacks = 1 lunch (1/3=0.33)
Equivalent meal price
Combined selling price
Equivalent meal cost
Combined raw food cost
of meals served =
Raw food cost/equiv meal cost
Cost of food available =
Beginning inventory + purchases
Cost of goods sole =
Cost of food available - ending inventory
Revenue
Cash income, no cash charges, credits from departments
Net operating expense =
Gross direct expense - revenue
Productivity analysis
Meals / labor hour, meals / pt day, meals / minute, worked hours / 100 meals
Meals per paid hour
Total meals (actual counts and ME) / total paid labor hours
Meals per worked hour =
Total meals / productive hours
Total paid hours per meal =
Productive + nonproductive hours / total meals
Total worked hours per meal =
Productive hours / total meals
Nonproductive hours percent =
(paid hours - worked) x 100 / paid hours
Statistical budget
Projections of activity for the coming year such as admissions, discharges, consults
Expenses budget
Attempt to anticipate costs of operation for each cost enter, dept, org
Revenue budget
A projection of the income likely to be received by the institution during the budget year
Incremental baseline
Previous years budget is the starting point, adjustments made to each line item to reflect expected changes
Zero
Start with zero for each line item and build according to expectations
Combination
Use the zero for some and incremental for others
Capital budget
Money that is petitioned for by multiple departments, have to prove why you deserve it
Fixed costs
Costs that do not vary with changes in volume of sales
Variable costs
Costs that vary directly with changes in Sales
Food cost percentage
Cost of food / sales
Labor cost percentage
Cost of labor / sales
Menu sales price =
Raw food cost x pricing factor
