Certified Dietary Manager (CDM) Practice Exam

Which of the following statements accurately reflects a characteristic of unit cost?

1. It remains constant regardless of ingredient prices

2. It is affected by the volume of food produced

3. It only includes raw food costs

4. It is irrelevant to portion control

The correct answer is: It is affected by the volume of food produced

The statement highlighting that unit cost is affected by the volume of food produced accurately reflects a fundamental concept in cost accounting, especially in the context of foodservice management. As the volume of food prepared increases, the fixed costs (like labor and overhead) are distributed over a larger number of units, often resulting in a lower unit cost. Conversely, producing less can mean that these same fixed costs are spread over fewer units, raising the unit cost. Understanding this relationship is crucial for dietary managers who need to efficiently control costs while ensuring adequate meal production. The dynamics of scaling production—where increased volume can lead to cost efficiencies—underscore the importance of volume in calculating food service expenses. This principle is vital for budgeting, forecasting, and maintaining profitability within a food service operation.