Unformatted text preview:

FINAL EXAM STUDY GUIDE The exam will be 100 multiple choice questions worth 1 pt each Anything from lecture and powerpoint slides are fair game but the following topics will cover the majority of the information on the final Review the study guides from Test 1 and Test 2 o Use the Answers to the test 1 and 2 key posted on blackboard as a review for the first two tests Purpose of a budget o Charts the course for future action Organizations business plan expressed in financial terms To plan for decision making establishing objectives and setting priorities Know the benefits of preparing a budget o Establish specific future goals o Evaluate past activities o Formulate work plans o Forecast available revenue o Predict fund expenditure o Measure actual results o o Estimate available funds at end of budget period o Serve as a public information system Identify potential problems Know the different types of budgets and factors that affect budgets o Operating Revenue Expense Budget A business s forecasted revenues along with forecasted expenses usually for a period of one year or less Most common in foodservice management Parts of Operating Budget Labor Budget Total labor cost to be expended for a set period of time pplx Material Budget Projects the cost of raw materials to be used in the production of goods Overhead Budget Expected cost of all production costs other than direct materials and labor Factors that affect budgeting Historical Trends Looking at what has happened in the past Federal and State subsidies will federal reimbursement rates increase Operational Program Changes Labor hours haven t been reduced as the of customers has decreased instead work ha expanded to fill the time available Increased Decreased Program Costs Equipment is getting older and is breaking more frequently raises planned for employees Changes in Meal prices will the price of meals increase will of people served decrease Know the different methods of budgeting o Top Down Budgets are prepared by top management and imposed on the lower layers of the organization Expresses performance goals and expectations of top management Can be unrealistic because they do not incorporate the input of the very people who implement them o Bottom Up Supervisors and middle managers prepare the budgets and then forward them up the chain of command for review and approval Tend to be more accurate Positive impact on employee morale because employees assume and active role in providing financial input to the budgeting process o Incremental Based on previous years budget Determine what was allocated last year and adjust based on inflation labor contracts profitability operating losses restructuring and reengineering easy to prepare but not resp to change o Zero Based Budgeting Serves to identify and eliminate wasteful or obsolete practices Everything on the budget must be justified Each manager prepares estimates of proposed expenses for a specific period of time as though they were being performed for the first time Each activity starts from a budget base of zero takes longer difficult responsive to change most effective when restructuring challenges previous modes drives managers to rethink all aspects of foodservice operation o Combination of Incremental and Zero Based use some of each principal to create the budget Be able to calculate the PPD meals per labor minute turnover rate o PPD Amount to be spent for food for each patient each day 1 Total all food expenses for the month raw food costs 2 Estimate number of meals served month in the facility by either method Review documentations of meals served daily and total that OR review your daily census for each day multiply the daily census by 3 3 meals d and multiply by the of days in the month 3 Divide total expenditure for raw food by the of meals served month for cost or meal and multiply by 3 for cost per day OR divide AVERAGE census and then by of days in the month o Meals per labor minute Total meals produced Productive labor hours Average is 5 5 meals labor hours for cafeterias Average is 3 5 meals labor hours for acute care facilities Average is 5 0 meals labor hours for extended care facilities o Turnover Rate Determine time frame Determine average of employees working during that time frame Determine how many people left the company over that time frame Divide the Total of people who left average of total employees Decimal number multiply by a 100 to get a percent value Understand inventory principles week o Take inventory monthly and review how much is on the shelf Strive to turn over inventory each Know ways to decrease the labor and the food budget o FOOD BUDGET o Raw foods purchasing receiving food prep Service Lower cost substitutes Standardized recipes Plate waste Pre packaged and bulk purchases o Security employee and guest meals activities theft o Clinical Cost effective menu changes Liberalized diets Food preferences Ordering snacks and supplements o DECREASE LABOR More than one station responsibility More training Less new hire Termination if necessary Know the difference between fixed and variable costs o Fixed costs Generally stay the same Ex insurance rent salaried wages interest and office maintenance Take into account any raises that may be coming to employees or any changes expected in expenses to come o Variable costs Expenses that will change or vary depending on sales Ex cost of goods for resale cost of labor in some service industries advertising expenses commissions and payroll taxes Be able to calculate labor cost percentages any cost to revenue percentages o Labor Cost percentages Cost of labor revenue Some managers use total payroll costs in this equation wages unemployment and workers comp health insurance vacation sick leave and holiday pay employee meals training expenses etc Know what assets liabilities revenue and expenses are o Assets liabilities balance o Revenue income in the form of cash and accounts receivable including federal and state reimbursement o Expenses costs in the form of bills paid and accounts payable Know ways to increase revenue Increase of customers increase amount of each customer spends add seating add drive thru take out extend operating hours suggestive selling and creative menu pricing o o o o Understand the 20 50 30 rule 20 of the people in an organization will embrace change and welcome it 50 are ambivalent 30 are resistant and may sabotage or undermine the change process Understand the reasons people resist


View Full Document

FSU FSS 4135 - FINAL EXAM STUDY GUIDE

Documents in this Course
Load more
Download FINAL EXAM STUDY GUIDE
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view FINAL EXAM STUDY GUIDE and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view FINAL EXAM STUDY GUIDE and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?