Deck 17: Financial Management

Question 1

What is the value of the food used in June?

A) $11,327
B) $10,958
C) $8496
D) $8865

Answer 1

D

Question 2

A budget is translated into operational functions during the justification phase of the budget planning process.

Answer 2

False

Question 3

An objective of the budget planning process should be to identify financial standards for comparison with actual transactions.

Answer 3

True

Question 4

Calculate the labor cost percent of total revenue.

A) 2.3%
B) 1.23%
C) 12.3%
D) 23%

Question 5

Zero-based budgeting is used to develop capital budgets in a hospital. The director of Food and Nutrition wants to request a blast chiller. Which of the following is the best quantifiable evidence to submit with the request to support the need?

A) temperature data from existing refrigeration units
B) testimonials from dietitians that patients are complaining about cold food
C) the list price for the desired blast chiller
D) claims from the manufacturer regarding the speed of cooling in the blast chiller

Question 6

Using the following information, calculate the monthly net profit.

Question 7

An operating statement indicates that $64,751 was budgeted for supplies and that $66,250 was actually spent. Calculate the percent variance.

A) 12.3%
B) 1.23%
C) .23%
D) 2.3%

Question 8

Budget variances need to be reconciled only if the line item is over budget for the report period.

Question 9

Patient census records can be used during the budget planning process to project volume for the fiscal year.

Question 10

Calculate the total revenue.

A) $3305
B) $4305
C) $5305
D) $6305

Question 11

Labor minutes per meal is an example of a productivity indicator.

Question 12

Calculate the average total cost per resident per day for the month of June

A) $5.23
B) $7.20
C) $7.63
D) $8.17

Question 13

Calculate the average raw food cost per resident per day for the month of June.

A) $.80
B) $1.25
C) $2.40
D) $7.20

Question 14

The fundamental accounting formula is

A) beginning inventory + purchases - ending inventory = food used
B) assets = liability + equity
C) current ratio = current assets to current liabilities
D) net profit = gross profit - expenses

Question 15

Which of the following best represents a volume indicator for a Child Nutrition Program in a public school?

A) number of meals served
B) number of meal equivalents produced per labor hour
C) number of students district-wide eligible for free and reduced meals
D) number of full time employees