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  #1  
August 5th, 2017, 01:27 PM
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Equations to know for RD Exam

Hi I am interested in having the lists of the important financial equation which one has to remember for appearing for the RD Examination?
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  #2  
August 5th, 2017, 01:49 PM
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Join Date: Mar 2012
Re: Equations to know for RD Exam

The lists of the important financial equation which one has to remember for appearing for the RD Examination are as follows:

Current Ratio
Current Cost/Current Liabilities

Acid test Ratio
Cash + Accounts Receivable + Marketable Securities/Current Liabilities; want to be >1 (means you can pay your bills)

Inventory Turnover
Cost of Goods Sold/Average Inventory Value

Percentage of Occupancy
# of beds occupied/# of beds available

Return on Equity
Net Profit/Equity

Return on Assets
Net Profit/Assets

Profit Margin
Net Profit/Sales

Gross profit/loss
Sales-Cost of Goods Sold

Net Profit/Loss
Gross profit-labor cost-operating cost

Food cost percent
Food cost/sales

Labor cost percent
labor cost/sales

Meals per labor hour
Total number of meals served/total labor hours to produce meals

Labor minutes per meal
Total labor minutes to produce meals/total number of meals served

Break-even point
Fixed cost/1- (variable costs/sales)

Food Productivity ratio
Food cost per patient day, food cost per meal

Labor productivity ratio
Labor cost per patient day, labor cost per meal

Mark up factor
100%/Food Cost %; Menu price= raw food cost x factor

Prime cost
raw food cost + direct labor cost

Actual cost
Food cost+ labor cost+ other variable cost+ fixed cost+ profit

Edible Portion
As purchased amount x % yield

As purchased
Edible Portion/% yield


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