CSUF Dietetic Internship Child Nutrition Rotation Clovis & Kings Canyon Unified School District Nutritional Services

Finance Study Guide

Intern: Jia Lu Due Date: December 13th, 2013

DEFINI I!NS
"# Define the follo$ing ter%s& 'rofit and (oss State%ent An report that illustrates expenses, profit and loss of re enue for an or!ani"ation# )alance Sheet A report of the summar$ of financial balances that contains assets, liabilities and o%nership e&uit$ 'hysical Inventory * A method of trac'in! in entor$ b$ ph$sicall$ countin! the stoc'# 'erpetual Inventory * A method of trac'in! in entor$ %here the information on the in entor$ &uantit$ and a ailabilit$ is updated on a continual basis#

'URC+,SING
-# .hat is the difference /et$een for%al and infor%al /idding0 (ormal biddin! occurs %hen the bu$er pursues a endor for pricin! on products# Informal biddin! occurs %hen the endor approaches the bu$er %ith products and pricin! information# 1# .hat is the purpose of using unifor% $ritten specifications in purchasing0 )he purpose of %ritten specifications is to set criteria that products should meet# If the product fails to meet one or more of the specifications, it ma$ be deemed defecti e or de!raded in &ualit$# a# .hat factors $ould you include in a specification for fresh apples0 )he factors I %ould include are: !rade, t$pes of pac' and si"e re&uirements, shipment specifications, tenderness and maturit$, and the apples must meet the *+ ,ondition +tandards for -xport# /# .hat factors $ould you include in a specification for fresh %il20 )he factors must specific the t$pe of mil' .ra% or pasteuri"ed/, total bacteria count, 0fat, 0 protein, 0 lactose, mil' urea nitro!en, inhibitor$ substances, phosphatase, and free"in! point#

)UDGE ING
3# .hat types of inco%e $ould you include $hen preparing a /udget for a school food service depart%ent0 )he t$pes of income %ould be a comparison of the number of people in the household and total income# 1educed meals are at 1300 of the po ert$ le el and the free meals are at 1230 (or example, a famil$ of 2 ma'in! 22,456 per $ear %ould &ualif$ for reduce meals %here as a famil$ of 2 ma'in! 20,143 &ualifies for free meals# 4# Na%e at least four types of e5penses that should /e included on a cost6/ased /udget for a school food service depart%ent0 )he four t$pes of expenses are food, utilit$, labor and suppl$ costs# 7# Using the current year8s pro9ected /udget: deter%ine the percent of pro9ected e5pense for the follo$ing categories& (ood 6,327,456#00 +uppl$ 42,170#00 Labor 3,725,314#00 ;# Using the current year8s pro9ected /udget: deter%ine the follo$ing& a# (ood cost per meal ser ed 3,037,03186,213,6779 1#15 b# Labor cost per meal ser ed 3,725,31486,213,677 9 1#36

C!S <,N,GE<EN
=# >our progra% is e5periencing a deficit# .hat are at least three suggestions for turning your operation solvent0 1# ,hec' the in entor$ to ensure accurate count for items %ere ta'en# -xcess in entor$ ma$ be sub:ected to spoila!e or theft and should be accounted for to help reduce cost# 2# I %ould re ie% the menu, anal$"e if there are product that can be purchased at a lo%er cost# Items that are expensi e and does not sell %ell should be eliminated from the menu# ) 3# )he last su!!estion %ould be to cut labor# If there are multiple full time emplo$ees a reduction in hours ma$ be reduce hours b$ 20, 30 and if the deficit is er$ se ere 70# 5# ;ou ha e determined that $our operation is in deficit because $our labor cost is too hi!h# ;ou ha e determined that $ou must reduce $our labor expenditure b$ 130# <i en the follo%in! information, ho% man$ ()-=s %ill $ou reduce to meet the ob:ecti e> ?ro:ected $earl$ labor expenditures 9 @335,222

,ost per labor hour .includin! benefits/ 9 @14#66 ?roduction Da$s .da$s %or'ed/ 9 223 335,222814#6691,200 hours 223 x 2 hours 9 21,230 hours for 223 da$s 2123081200 9 12#13 ()- x#13 reduction 9 1#2 12#13 A1#2 9 10 ()10# ;our operation has experienced a ma:or decrease in the number of meals ser ed per da$# ;our operation is desi!ned to produce at the rate of 32 meals per labor hour# ;our participation before this unexpected decrease %as 2,632 meals per da$# Bo% man$ hours of labor must $ou reduce of $our participation decreased b$ 170> 2,632 x #12 9 2,023 2,632 A 2,023 9 613 613832 9 12#5 hours ""# (ist at least four practices that help to control food costs# 1# 1educe %asteC use all of $our materials and in!redients# 2# <ood menu %ritin! and plannin!# 3# ?urchasin! the ri!ht amount of foods# 6# ?roper stora!e to reduce spoila!e and theft# "-# .hat are so%e $ays to increase productivity in your operation in order to reduce la/or costs0 Na%e at least four# 1# Dor'in! tools and e&uipment# 2# )eam %or' and !ood communication 3# -as$ to prepare meals 6# Ade&uate preparation for meals# "1# .hich of the follo$ing typically represents the highest percentage of a school food service /udget0 a# -&uipment b# Labor c# +uppl$ d# (ood e# E erhead