FSM Questions & Equations (Helpful)

Of the following, which is the best example of semi variable costs: A: Total food cost B: Total prime cost C: Total beverage cost D: Total electricity cost

D: Total electricity cost Semi-variable costs include both a fixed (not affected by sales volume) and variable (varies directly with sales) component. Food/beverage costs are completely variable and prime costs are direct material and direct labor.

how to Determine food cost percentage

Food Cost Percentage = Daily food cost/Daily income example: 8,000/20,000 = 40%

how to Determine Food Inventory Turnover

Inventory turnover rate = cost of sales (food costs)/average inventory cost example: 8,000/7200 = 1.11

An employee who is working with two other employees on a group project appears to be lax in work. The best approach that a supervisor should take when he comes upon the situation is to: A. ignore it, unless one of the other workers complains. B. speak to the employee in private as soon as possible. C. reprimand the employee on the spot for not carrying his/her share of the used work. D. do not say anything to the employee, but document it so that it can be used when completing a performance appraisal.

B. speak to the employee in private as soon as possible. Good employee discipline - if effective, employees will have an improved work environment. An organization should have clear written policies and procedures regarding disciplinary action. The first formal step in the process is a verbal warning in the privacy of the manager's office where the employee and manager discuss the problem and possible solutions from both points of view. Generally, the manager should not be confrontational.

At what point should an employee be given his/her performance expectations? A: When the employee is interviewed for the job B: On the first day of employment C: After he/she has finished training D: When their performance is found to be poor

B: On the first day of employment To perform well, employees need to know what is expected of them. Performance expectations go beyond the job description - They are the range of expected job outcomes.

A restaurant recently opened and wants to calculate the number of meals that need to be sold to reach the break even point (BEP) if the fixed cost is $25,000, selling price is $5.00, and the variable cost is $2.25. A: 45454 B: 2.75 C: 9091 D: 15246

C: 9091 BEP = Fixed Cost/selling price - variable cost 25,000/5-2.25 = 25,000/2.75 = 9091

You are hired for an RD position. Shortly following the start of your job, you become aware that a male employee in the same position as you with the same experience is receiving a higher salary. Which Act can you go to for guidance? A: The Equal Opportunity Act B: The Fair Labor standards Act C: The Equal Pay Act D: The Fair Wage Act

C: The Equal Pay Act Equal opportunity act - prevents discrimination based on race, color, religion, gender, national origin, or political affiliation. Fair labor standards act - Minimum wage law, wages for overtime, amendment in 1963 - Equal Pay Act - prohibits discrimination based on gender in payment of wages for equal work. No fair wage act

Given 20 FTE's to produce 2,700 meals in a 40-hour work week, calculate meals/labor hour. a. 3.38 b. 6.57 c. 13.50 d. 19.28

a. 3.38 Meals per labor hour = total number of meals served/total labor hours to produce meals 2,700/800 (20 FTE's x 40 hrs) = 3.38

The raw food cost is $0.18. The selling price is what if the food cost percentage is 35%. a. 51 cents b. 45 cents c. 81 cents d. $1.20

a. 51 cents Selling price = food cost/desired food cost % 0.18/.35 = .51

A sixteen-year-old part time worker at your facility may operate equipment under special supervision. Which law regulates the type of equipment and number of labor hours permitted to adolescents? a. Fair Labor Standards Act b. Age Discrimination Act c. Wagner Act d. Equal Opportunity Act

a. Fair Labor Standards Act - Fair labor standards Act - helped reduce poverty, create purchasing power, and establish a federal minimum wage. Maximum hours, equal pay, record keeping, employee meals and meal credits, tip regulations, uniform maintenance and child labor provisions. - Age discrimination act - prohibits discriminatory employment practices, based on age for persons between the ages 40 and 70. It was amended to prohibit employers from requiring retirement at any age. - Equal opportunity act - can't discriminate based on age, gender, race, color, religion, national origin, disability, genetics.

how to Determine Net Income percent

Total revenue - costs/Revenue example: 20,000-18,600 (8,000 + 7100 + 3500) = 1,400/20,000 = 7%

A hearing to dissolve a dispute during an impasse where the decision is usually binding is termed? a. arbitration b. mediation c. injunction d. strategy

a. arbitration Arbitration - most definitive type of 3rd party intervention. Appointed arbitrator usually has power to determine and dictate the settlement terms, granting a solution to the problem. Injunction - court order prohibiting either party from performing an unjust, inequitable or injurious act. Mediation - involves a neutral mediator agreed upon by both parties who takes part in negotiations. Parties are not obligated to accept recommendations made by the mediator

What is the deduction of union dues from pay? a. check-off b. union shop c. open shop d. expensive

a. check-off Check off - the deduction of union dues from pay Open shop - can join union or not Union shop - must join union

The length of time upon which an operating budget depends is: a. fiscal year b. monthly c. daily d. semiannually

a. fiscal year Operating budgets are annual budgets.

All of the following are examples of indirect costs except: a. food b. taxes c. insurance d. depreciation e. all are indirect costs

a. food Indirect costs - based on expenses that cannot be identified with specific products, departments or activities (e.g., taxes and insurance) Direct costs - costs that can be identified with specific products, departments or activities (e.g., food costs)

Joe would like to control costs for his facility. He determines that he can probably reduce his fixed costs. Which cost, therefore, can he reduce? a. insurance b. cost of china c. labor cost d. food cost

a. insurance Fixed costs are costs required by an operator to exist and do not vary with sales. Includes insurance, rent and property tax.

_______ is the process of determining the fundamental elements of jobs through systematic observation and analysis. It studies all aspects of the job. a. job analysis b. task profiling c. job specification d. structural assessment

a. job analysis An uninvolved individual usually does the job analysis. From the job analysis, the job specification and job description are created. 2 types: bottom-up approach - is usually used when the organization already exists and top-down approach - is usually used for analyzing new and/or future jobs.

A foodservice manager wants to assess the operator's ability to meet short-term debts. She would use: a. liquidity ratios b. net worth ratios c. profitability ratios d. solvency ratios

a. liquidity ratios Liquidity ratio - assess the ability to meet short term debt. Net worth ratio - assess the ability to meet long term debt. Profitability ratio - assess a business's ability to generate earnings as compared to expenses and other costs. Solvency ratio - used to measure a company's ability to meet long-term obligations.

The work schedule that serves as an overall plan is the a. master schedule b. shift schedule c. production schedule d. fixed schedule

a. master schedule *Master schedule - serves as overall plan; days on and off, vacations; basis for developing weekly schedule. *Production schedule - time sequencing of events required to produce a meal; employee assignments and menu items; quantity to prepare and the timing. *Shift schedule - staffing patterns for a particular operation; positions and hours worked, number of days worked per week, relief assignments.

The best use of performance appraisals is: a. to improve performance b. to motivate the employee c. to weed out the employees who perform poorly d. to reward those who do well

a. to improve performance Also called an employee review, periodic evaluation that is the basis for continued employment and changes in salary. It serves to document proficiencies and strengths, and to identify areas in which improvement is desired.

Which of the following is a paid worker who is elected by the workers to represent them? a. union steward b. arbitrator c. mediator d. lawyer

a. union steward Mediator - neutral person helps settle differences, decisions are not binding. Arbitrator - person hearing arbitration. Hearing to dissolve a dispute, decision is usually binding.

Calculate the profit margin if the Net Profit = $2024; Sales = $20,000 and Food cost % = 29%. a. .10 b. .06 c. .35 d. .03

a: .10 % profit margin = net profit ($)/ sales ($), 2024/20,000 = .10

Determine the amount of dollar sales needed to break even. Note only food cost is variable expense. a. 26,500 b. 40,000 c. 17,666 d. 18,600

c. 17,666 BEP = Fixed costs/1- (variable costs/sales) 10,600 = 1 - 8,000/20,000 = 10,600/1-.4 = 10,600/.6 = 17,666.67

What is the rate of inventory turnover for the following? opening inventory 4,000 closing inventory 2,000 food cost 10,000 a. 5 b. 4.4 c. 3.33 d. 2

c. 3.33 Inventory turnover rate = cost of sales (food costs)/average inventory cost 10,000/3,000 = 3.33

If the General Hospitals FIXED COST = $60,000, VC=$3.25, and SP=$5.00. How many meals must be sold to break even? a. 30,226 b. 32,463 c. 34,286 d. 39,012 e. 40,673

c. 34,286 BEP = Fixed Cost/selling price - variable cost 60,000/5-3.25 = 60,000/1.75 = 34,286

When preparing a budget, overhead costs include: I: Food costs II: Beverage costs III: Labor costs IV: All costs other than prime cost a. I, II. b. I, II, III. c. IV. d. None of the above

c. IV Overhead expenses are all costs on the income statement except for direct labor, direct materials & direct expenses. Overhead expenses include accounting fees, advertising, depreciation, insurance, interest, legal fees, rent, repairs, supplies, taxes, telephone bills, travel and utilities costs.

Which of the following was created to make working conditions safer for employees in all businesses? a. US Dept. of Agriculture b. Labor Board c. OSHA d. Fair Labor Standards Act

c. OSHA US Dept. of Agriculture - US federal executive dept. responsible for developing and executing federal government policy on farming, agriculture, forestry, and food. Labor Board - National Labor Relations Board (NLRB) Independent agency of the US government charged with conducting elections for labor union representation and with investigating and remedying unfair labor practices. OSHA - Occupational Safety and Health Administration - Federal organization (part of the Dept. of Labor) that ensures safe and healthy working conditions for Americans by enforcing standards and providing workplace safety training

Under which of the following acts are employers denied the right to form a closed shop: a. Norris-LaGuardia b. Wagner c. Taft-Hartley d. Landrum-Griffith

c. Taft-Hartley - Taft-Hartley Act of 1947, also known as the Labor Management Relations Act. A closed shop is a form of union security agreement under which the employer agrees to only hire union members, and employees must remain members of the union at all times in order to remain employed. - National Labor Relations Act - also called the Wagner Act. Rights of workers to organize and join labor unions, choose representation, bargain collectively, and in most cases, strike. - Labor management reporting and disclosure act: also called Landrum Griffin Act. Protects union members from misconduct by the union (e.g., misuse of pension funds). -The Norris-La Guardia Act (also known as the Anti-Injunction Bill) was a 1932 United States federal law that banned yellow-dog contracts (is an agreement between an employer and an employee in which the employee agrees, as a condition of employment, not to be a member of a labor union), barred federal courts from issuing injunctions against nonviolent labor disputes, and creating a positive right of noninterference by employers against workers joining trade unions

Which of these questions would be lawful for an interviewer to ask? a. Are you a citizen of the United States? b. What Social Clubs do you belong to? c. Are you working just to earn extra income? d. What is your educational background?

d. What is your educational background? By law, questions cannot be asked about national origin, religion, marital status or age, physical or mental disability, sexual orientation, transportation, children, height or weight, type of discharge from the military, credit history or reference, or arrest record. Citizenship may not be asked unless you decide to hire the person.

Which is not true regarding work simplification procedures? a. decreases costs b. increases productivity c. eliminates unnecessary parts of job d. looks at overall scope of work

d. looks at overall scope of work Work simplification features - purpose (eliminate unnecessary parts of a job and those that add no value), looks at the smallest parts of the job (hand movements, steps taken) and increases productivity and decreases costs.

A job specification describes the: a. responsibilities b. work schedule c. job relationships d. minimum standards for an applicant

d. minimum standards for an applicant Job specification - sets minimum qualifications needed to perform the job. It typically includes payroll title, department, supervisor, job summary, education, experience, skills, physical and personal requirements, references, hours and wages and promotional opportunities.

When an employee is injured on the job the supervisor first a. takes action to correct the reason for the accident b. sends the employee home for the rest of the day c. assigns an alternate employee to handle the injured employee's duties d. secures a medical evaluation of the extent of the injury

d. secures a medical evaluation of the extent of the injury

Role playing is a training technique in which trainees pretend to be the persons with whom they have some relationship during the course of their work. One the basis of this definition, the one of the following situation in which role playing may be used most appropriately is in training: a. cafeteria workers to serve food to customers b. food handlers to use sanitary precautions before starting to prepare meals for patients c. student nurses to calculate dietary modifications for postoperative patients d. supervisors to handle employee grievances

d. supervisors to handle employee grievances

Any employee maybe hired but must join the union after hiring. a. open shop b. closed shop c. agency shop d. union shop

d. union shop Open shop - can join union or not. Agency shop - all workers must pay agency fee, but are not required to join a union. Closed shop - must be a member of the union first.

You are reviewing some financials for ABC food service. Current Assets are $95,000.00. Sandwich sales last month totaled $67,500.00. Fixed costs last month were $12,000.00. Variable cost per sandwich was $3.00 and each sandwich sells for $5.00 a piece. What was the total variable cost of sandwiches sold last month? a. $40,500 b. $67,500. c. $79,500. d. $107,000.

A: $40,500 67,500/$5 = 13,500 sandwiches sold x $3 = 40,500

Calculate cost of food issued and cost food consumed for the following: Purchases $24,182.55 Opening inventory $6,622.40 closing inventory $6,719.30 grease sales $91.85 cooking liquor $253.65 gratis to bar $177.35 transfers to units $347.60 a. $24,085.65 ; $23,722.50 b. $25,032.50; $24,525.50 c. $25,650.00; $20,520.70

Purchases $24,182.55 Opening inventory $6,622.40 closing inventory $6,719.30 grease sales $91.85 (subtract) cooking liquor $253.65 (subtract) gratis to bar $177.35 (subtract) transfers to units $347.60 (add) a. $24,085.65 ; $23,722.50 Cost of food issued = Opening inventory + purchases = Total available - Closing inventory 6,622.4 + 24,182.55 = 30804.95 - 6719.30 = 24085.65 Cost of food consumed = Cost of food issued Plus/Minus adjustments 24085.65 - 91.85 - 253.65 - 177.35 + 347.60 = 23910.40 (187.80 difference) Adjustments minus = transfer from kitchen to bar, food to bar, gratis to bar, steward sales, promotion expense. Adjustments plus = transfer from bar to kitchen, transfer from other units

Tim's business totaled $75,000 in sales. $30,000 is needed for variable costs. $22,000 is needed for fixed costs. What is Tim's break-even pt? a. $30,000 b. $36,666 c. $22,999 d. $42,000

b. $36,666 BEP = Fixed Cost/ 1 - (variable cost/sales) 22,000/1-(30,000/75,000) = 22,000/1-.40 = 22,000/.6 = 36,666

Total Sales = 3,645; 50% = food cost %; what is mark up factor? a. 2.5 b. 2 c. 91.13 d. 3645

b. 2 Markup factor = 100 (representing total sales)/desired % of food income spent on raw food costs 100/50 = 2 (total markup factor)

If a cook works seven hour/day and serves 558 meals per 31-day month, what are the labor minutes per meal? a. 29 b. 23 c. 30 d. 20

b. 23 Labor minutes per meal = total labor minutes to produce meals/total number of meals served 13,020 (7 hrs/day x 31 days x 60min/hr)/558=23.3

Amounts owed by a business payable in money, goods or services may be identified as: a. an asset b. a liability c. capital stock d. owner's equity

b. a liability Asset - economic resource. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Capital stock - represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors. Owner's equity - residual claim or interest of the most junior class of investors in assets, after all liabilities are paid.

What is the report which presents the financial condition of an organization as of a particular date? It contains assets, liabilities, and equity of the organization. a. budget b. balance c. income statement d. funds flow statement

b. balance Budget - is a list of all planned expenses and revenues. It is a plan for saving and spending. Income statement - a company's financial statement that indicates how the revenue is transformed into the net income. Funds flow statement - shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.

Which of the following are considered controllable costs? a. taxes b. beverages & food c. mortgage d. depreciation

b. beverages & food Opposite of a fixed cost. Similar to direct, variable, or flexible cost. Varies directly with sales (revenue) e.g., china, silver, food.

Which budget plan provides a plan for improvements, expansions, and equipment? a. revenue b. capital c. cash-flow d. operational

b. capital Capital budget - budget plan for improvements, expansions and replacements in buildings, major equipment and land. Revenue budget - includes estimated incomes from sales or services. It can also include sources such as grants, endowments, property and investments. Cash-flow budget - detailed estimates of anticipated cash receipts and disbursements throughout the budget period. Operational budget - provides a basis for control, planning and coordination. Shows the overall structure of the operation and enables staff to visualize its place in it.

All of the following are the current assets except: a. cash b. inventory c. land d. accounts receivable

c. land Current assets are cash, accounts receivable, marketable securities and inventory expected to be turned into cash, sold or exchanged (usually within one year). Land is considered a fixed asset.

If a piece of equipment costs $11,000, is supposed to last 10 years, and have a salvage value of $1,000, how much may the yearly depreciation value be? a. $5,000 b. $3,335 c. $800 d. $1000

d. $1000 Depreciation value = Cost-Salvage Value/Years of life 11,000-1,000/10 = 10,000/10 = 1,000

For employees who are working five days per week in a hospital, how many regular employees can be covered by two relief employees? a. 1 1/2 b. 2 1/2 c. 3 d. 5

d. 5 One full time relief employee can cover the schedule of 2.5 FTE.

Determine the amount of sales needed in dollars to break-even. Fixed cost = 25,000 Variable cost % = 54% Gross sales = 55,000 a. 54,695 b. 55,456 c. 52,937 d. 54,348

d. 54,348 BEP = Fixed Cost/ 1 - (variable cost/sales) 25,000/1-.54 = 25,000/.46 = 54,348

Mr. Bell of the Bell and Sons Family Restaurant was discussing labor costs with a competitor. The competitor asked Mr. Bell his labor cost percentage of his total costs. Mr. Bell did not wish to reveal his total dollar income so he used these figures to calculate his answer: Wages = $60,530.00 Fixed costs = $40, 270.00 Variable Costs - 51, 222.00 What was the labor cost percentage of his total costs? a. 39.8% b. 84.6% c. 66.5% d. 66.1%

d. 66.1% Labor cost percentage = annual labor costs/annual revenue 60,530.00/(40,270.00 + 51,222.00) x 100% = 66.1%

A foodservice operation has 18 FTEs that produce 7000 meals in a 40-hour workweek. How many meals per labor hour are being produced? a. 22.2 b. 19.4 c. 10.3 d. 9.7

d. 9.7 18 FTE * 40 hr/wk = 720 tot labor hours per week 7000/720 = 9.7222

Where can the dietitian find current reliable wage information? a. Federal Register b. Occupational Handbook c. Surveys d. Bureau of Labor Standards

d. Bureau of Labor Standards Federal Register - (FR) The official journal of the federal government that contains government agency rules, proposed rules and public notice Occupational Handbook - A publication of the US Dept. of Labor's bureau of Labor Statistics that includes information about the nature of work, working conditions, trainig and educaiton, earnings and job outlook for hundreds of different occupations in the US. Surveys - General view, examination, or description of someone or something. Bureau of Labor Standards - More than 180 federal laws. These cover many workplace activities for about 10 million employers and 125 million workers.