Formulas To Know

Question 1

1 FTE =

Answer 1

8 hours per day
40 hours per week
2080 hours per year

Question 2

as purchased =

Answer 2

Question 3

edible portion =

Answer 3

As purchased x percent yield

Question 4

percent yield =

Answer 4

Question 5

define: cost of food sold

Answer 5

the cost of all the goods the company sold over a time period

Question 6

cost of foods sold =

Answer 6

Question 7

breakeven point - units needed to sell =

Answer 7

fish call / ((sharks poo) - (very calmly))

Question 8

breakeven point - money needed to make =

Answer 8

Question 9

factor pricing method
final cost =

Answer 9

Question 10

markup factor =

Answer 10

Question 11

prime cost method
final cost =

Answer 11

Question 12

popularity index =

Answer 12

Question 13

scoop sizes

Answer 13

Question 14

cafeteria turnover =

Answer 14

Question 15

EOQ =

Answer 15

Question 16

10 can size and cans per case

Answer 16

3 quarts, 96 fl oz
6 cans per case

Question 17

top down budget

Answer 17

company sets targets or outputs, and then determines the activities necessary to meet target and cost of carrying out those activities

Question 18

bottom-up budget

Answer 18

each unit prepare a budget and then it is set to upper management

Question 19

baseline budget

Answer 19

starts with previous budget and adjusts for current conditions

Question 20

zero-based budget

Answer 20

determines cost, outlay, and inflows without a baseline budget
- manager has to justify every expense with nothing automatically approched

Question 21

fixed budget

Answer 21

static budget
nothing about the budget changes from year to year

Question 22

flexible budget

Answer 22

changes with business activity

Question 23

incremental budget

Answer 23

uses existing budget numbers as base and adds incremental amounts relative to current budget

Question 24

assets-to-liabilities ratio

Answer 24

the percentage of assets divided by debt

Question 25

debt-to-equity ratio

Answer 25

the percentage of assets funded by shareholder’s equity and debt

Question 26

inventory turnover rate

Answer 26

assess if there is efficient use of assets

Question 27

profitability ratios

Answer 27

ability to generate excess income relative to sales

Question 28

solvency ratio

Answer 28

ability to meet long-term debts

Question 29

liquidity ratio

Answer 29

ability to meet short-term debts

Question 30

activity ratio

Answer 30

ability to transfer non-cash assets to cash assets

Question 31

current ratio

Answer 31

current assets by current liabilities

represents an organization’s ability to meet current financial oblivations

Question 32

gross profit =

Answer 32

revenue - COGS

Question 33

yearly depreciation =

Answer 33

(cost of equipment - salvage value) / years of usable life

Question 34

unit price profit =

Answer 34

selling price - food cost

Question 35

profit =

Answer 35

item profit * unit sold

Question 36

percent profit contribution =

Answer 36

unit item profit/total profit

(selling price - food cost) / total profit