Calculations and Formulas

An overview of calculations, formulas, and conversions for the RD exam

How many teaspoons are in a tablespoon?

3 tsp=1 tbsp

How many tablespoons in a ¼ cup?

4 tbsp = ¼ cup

How many teaspoons in ¼ cup?

12 tsp

3 tsp × 4=12

How many teaspoons in 1 cup?

48 tsp

12 tsp x 4= 48 tsp

How many tbsp in 1 cup?

16 tbsp

48 tsp /3 =16 tbsp

How many tablespoons in 1 ½ cups?

24 tbsp

16 + (4×2) = 24

How many fluid oz in 3 tbsp?

1.5 fl oz

0.5 oz x 3 tbsp= 1.5

how many cups in a pint?

2 cups

How many pints make up a quart?

2 pints

how many quarts make up a gallon?

4 quarts

how many tbsp in a pint?

32 tbsp

8×4=32

how many tsp in a pint?

32×3=96 tsp

How many cups in 1 quart?

4 cups

2×2=4

How many tbsp in 1 quart?

64 tbsp

4 cups x 16 = 64

How many fl oz in a pint? In a quart?

16 oz in a pint

32 oz in a quart

How many quarts in 1 gallon?

4 quarts

How many cups in 1 gallon?

16 cups

How many pints in 1 gallon?

8 pints

4×2=8 pints

How many tsp in 1 gallon?

768 tsp

96×8 tsp

How many quarts in ½ gallon?

2 quarts

What do scoop numbers on scoop handles refer to?

They refer to the number of scoops per quart

Example: #4 scoop has 4 scoops per quart

Single #4 scoop has ¼ quart

What # is divided by to get scoop size or scoop volume?

Divide 32 (fl oz) by scoop # or scoop volume to get the other!

If you have 1 gallon of food, and serve it using a #4 scoop, how many servings will you get?

Which scoop is biggest?

A budget prepared by upper management and given to operating units is what type of budget?

Which statement best described an incremental budget?

Top-down budget

prepared by upper management and given to operating units; company sets targets and determines activities to meet the target and cost

Bottom-up budget

each unit prepares a budget that is then sent up to upper management

Zero-based budget

Determines cost, outlay, and inflows without a baseline budget. Manager has to justify every expense with nothing automatically approved; time consuming and works better for discretionary costs that with essential operating costs

Fixed budget

also called static budgets; don’t change

Flexible budget

Changes with business activity because budget is constructed with a rate per unit of activity rather than a fixed amount; useful for measuring efficiency

Incremental budget

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

Value proposition budgeting

budget-building mindset; Asks why amount is in budget and if it adds value, how to justify the cost

What are finance ratios?

They use numbers from a company’s financial statement to describe the financial state of the company

What are finance ratios used for?

To assess liquidity, leverage, growth, margins, profitability, rates of return, and overall valuation

Assets-to-liabilities ratio

the % of assets divided by debt; a finance ratio

Debt-to-equity ratio

The % of assets funded by shareholder’s equity and debt; a finance ratio

Inventory turnover rate

assess if there is efficient use of assets; a finance ratio

Profitability ratios

ability to generate excess income relative to sales; a finance ratio

Solvency ratio

Ability to meet long-term debts; a finance ratio

Liquidity ratio

ability to meet short-term debts; a finance ratio

Activity ratio

Ability to transfer non-cash assets to cash assets; a finance ratio

Current ratio

Divide current assets by current liabilities. represents an organization’s ability to meet current financial obligations

What is a balance sheet?

the statement of an organizations current and fixed assets, current and long-term liabilities, and owner’s equity

What is equal to total assets on a balance sheet?

Liabilities + Equity

Net profit

final profit; subtracts expenses from gross profit

Total assets

Indicate monetary value of a property beyond any amounts owed - everything a company owns, including liabilities

Current assets

liquid assets, or those easily converted to cash (Ex. accounts receivable)

Accounts receivable

money owed to the company that will be fulfilled promptly, such as pending credit card payments or pending payments form a large catering order

Accounts payable

money the company owes, such as to vendors or wholesalers. These might be transactions that aren’t completed each time an order comes in but rather on a monthly or quarterly basic

Accumulated depreciation

a fixed asset; the total depreciation of an asset up to a given date subtracted from the original cost at time of purchase

Current liabilities

include accounts payable and accrued expenses that must be paid within 12 months

Owner’s equity

Monetary value of property beyond debts, including retained earnings

Retained earnings

Income set aside by the company instead of being distributed to shareholders

Gross profit

total sales minus costs of goods sold (COGS)

Operating costs

expenses

Costs of goods sold

COGS< the cost of producing the goods that are sold

Cost benefit analysis

estimated the total monetary value of benefits that will be derived from a project and compares that value to the cost of a project

Value analysis

systematic assessment of every feature of a product to ensure its cost is no greater than is required to achieve its function

Value

a balance of quality and cost that is affected by many factors

What are the 5 factors that affect quality?

Money

materials

management

people

market

What are the 3 possible results from value analysis?

Quality improvement, cost reduction, function analysis which all may lead to increased value

What is Value-added research?

process of assessing if value should be added; pre-cut produce at a grocery store is an example

Break-even point

when expenses and revenue are =; used to determine sales or overall profits that will cover total costs

What components make up total costs?

Fixed and variable costs

What are examples of fixed costs?

Rent, equipment, insurance, interests, property taxes, salaries, and depreciation

What are examples of variable costs?

Labor costs/wages, utilities, and production costs

What are FTEs?

Full time equivalents; 1 FTE is equal to 40 hours per week

What is monthly food cost?

calculated by summing the month’s opening inventory+purchases made during the month, and then subtracting the closing inventory

What are the 3 main types of forecasting?

qualitative techniques(based on expert opinion and consister special events relevant to industry), time series and projection (look at patterns and changes using historical data), and casual models (regression models, econometric models, intention-to-buy surveys, and input-output models)

Cost-of-goods sold (COGS)

expenses that go into products sold; include purchasing, labor, food costs, etc; calculated during a specific period of time and is similar to calculating monthly food cost

What is depreciation?

value decreasing after purchase; Ex. buying a less expensive oven but it not lasting as long

What is salvage value?

Monetary value of the item at the end of its usable life

What is as purchased quantity?

The amount (weight, volume, or count) of the product as we purchased it or received from a vendor

What is edible portion quantity?

The amount (Weight, volume, or count) of the product after we have prepared it

As purchased cost

the amount paid for the as purchased amount

As purchased cost per unit

the total AP cost divided by the quantity purchased (AP quantity)

Edible portion cost

The cost to the department of the portion served. The EP cost takes into account the trim and waste

Popularity

assessed by the number of units sold and not tied into profit

Profitability

the profit from a single unit of an item sold