Certified Dietary Manager (CDM) Practice Exam

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Prepare for the Certified Dietary Manager Exam with flashcards and multiple choice questions. Improve your knowledge with hints and explanations.

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What is the formula for calculating unit cost?

Total cost divided by total number of servings
Total cost divided by package weight
Total cost divided by number of employees
Total cost divided by preparation time

The correct answer is: Total cost divided by total number of servings

The formula for calculating unit cost is based on dividing the total cost by the total number of servings. This approach allows you to determine how much each individual serving costs, which is essential for budgeting and pricing in any dietary or food service operation. Understanding unit cost helps managers to maintain appropriate pricing strategies and control food costs, ensuring that the operation remains profitable while still delivering value to customers. Calculating unit cost in this way provides a clear picture of expenses per serving, aiding in cost analysis and decision-making regarding menu pricing or portion sizes. This metric is crucial for effectively managing food service operations, as it directly impacts financial planning and resource allocation.