Eat Right Prep (Management) Exam | 2026/2027 Latest Update | Complete Study Guide | Verified Questions & Answers | 100% Correct |GRADED A+

https://www.stuvia.com/user/quizbit07 Eat Right Prep (Management) Exam | 2026/2027 Latest Update | Complete Study Guide | Verified Questions & Answers | 100% Correct |GRADED A+ Q. What word best describes d ...

https://www.stuvia.com/user/quizbit07 Eat Right Prep (Management) Exam | 2026/2027 Latest Update | Complete Study Guide | Verified Questions & Answers | 100% Correct |GRADED A+ Q. What word best describes doing things correctly or getting the most output from the least amount of input? Efficient Effective Economical Expedient The correct answer is A. Efficiency is the means to get the most output from the least amount of input. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. What word best describes secretly taking something, planned and knowingly, without force, permission, or right? Theft Pilfering Robbery Embezzlement The correct answer is A. https://www.stuvia.com/user/quizbit07 Theft is premeditated without force, permission, or right. An example of pilfering is when an employee steals some lunch meat to take home. Robbery may involve force, and embezzling is most commonly taking money that belongs to the employer. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. When using the plan-do-study-act (PDSA) process, which of the following occurs during the plan phase? Determine how to collect data Train staff on new process Evaluate the effectiveness of the project Reduce wait time for appointments The correct answer is A. Determination of data collection methods occurs during the planning phase. Staff training and evaluation of effectiveness occur after a project has been implemented. Reduction of appointment waiting times would be an example of a quality improvement project goal. Joint Commission Resources. Cost-Effective Performance Improvement in Hospitals. Oakbrook Terrace, IL: JCAHO; 2005:94. Q. Which "leadership powers" appear to be most important for compliance? Expert, referent Legitimate, expert Referent, reward Reward, legitimate https://www.stuvia.com/user/quizbit07 The correct answer is B. For compliance, the position in the organization and competence are leadership powers needed. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. Which of the following business concepts represents marketing? Emphasis on product, sales-volume-oriented, needs of seller Customer wants, profit-oriented, future growth Sales-volume-oriented, customer wants, planning for today Profit-oriented, future growth, needs of seller The correct answer is B. Successful businesses are those that focus on producing goods that customers want while forecasting future growth. Marketers may also focus on being profit oriented, which aims to maximize net profit rather than focus on total sales. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. Which of the following elements is NOT part of the Institute of Medicine's (IOM) framework for health care quality? Patient-centered Equitable Timely Focused on choosing a process to improve https://www.stuvia.com/user/quizbit07 The correct answer is D. The IOM defines health care quality as care that is patient-centered, equitable (no disparities), timely, safe, effective, and efficient. Selection of a process that needs improvement is a component of a quality improvement program. Agency for Healthcare Research and Quality. Talking Quality: Guidance for Sponsors of Consumer Reports on Health Care Quality. Available at: http://www.ahrq.gov/professionals/quality-patient-safety/talkingquality/index.html. Accessed December 12, 2016. Q. Which of the following federal agencies has food safety responsibilities? The Joint Commission Partnership for Food Safety Education Environmental Protection Agency Academy of Nutrition and Dietetics The correct answer is C. The Environmental Protection Agency is the only government agency in the list of potential answers. The Partnership for Food Safety Education is a non-governmental organization Academy of Nutrition and Dietetics. Position of the Academy of Nutrition and Dietetics: food and water safety. J Acad Nutr Diet. 2014;114(11):1819-1829. Q. Which of the following is NOT a main component of continuous quality improvement (CQI)? https://www.stuvia.com/user/quizbit07 Customer satisfaction Data collection Team involvement Multidisciplinary rounds The correct answer is D. Customers—both internal and external—are a major component of CQI. CQI involves use of the scientific method for data collection. Team involvement is key to CQI because teams have greater ability to solve problems than individuals. Multidisciplinary rounds are one form of a team in health care but are not a main component of CQI. McLaughlin CP, Kaluzny AD. Continuous Quality Improvement in Health Care. 4th ed. Sudbury, MA: Jones & Bartlett; 2012. Q. Which of the following is NOT an element of the chronic care model (CCM)? Self-management support The community Clinical information systems Motivation The correct answer is D. The CCM encompasses care provided in the community and by health systems. Self management support is an element of the community within the CCM. Clinical information systems are part of the health systems component of the CCM. Motivation is not an element of the CCM. Improving Chronic Illness Care. The Chronic Care Model. http://www.improvingchroniccare.org/index.php?p=The_Chronic_Care_Model&s=2. Accessed December 27, 2016. https://www.stuvia.com/user/quizbit07 Q. Which ratio is designed to examine how effectively an organization is utilizing its assets? Assets to liabilities Debt to equity Inventory turnover Break-even point The correct answer is C. The assets-to-liabilities ratio calculates the percentage of assets provided by debt. The debt-to equity ratio tells what percentage of the company's assets are funded by shareholders' equity and debt. The break-even point is where expenses and revenue are equal. Effective use of inventory assets is reflected in the inventory turnover ratio. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. Which statement best describes the "A" component of the FADE performance improvement model? Choose a specific problem or process to improve Review data to better understand the current process Create a plan Implement and monitor the plan The correct answer is B. The "A" component of the FADE model includes collection of data that are analyzed in order to establish baseline understanding of current processes. The process that will be improved is selected during the focus stage, action plans are developed during the development stage, and the plan is implemented during the execution stage. https://www.stuvia.com/user/quizbit07 Joint Commission Resources. Cost-Effective Performance Improvement in Hospitals. Oakbrook Terrace, IL: JCAHO; 2005:95. Q. Which statement best describes the "A" component of the PDSA performance improvement model? Determine how changes will be implemented Implement the intervention Determine the impact of the intervention Maintain and continue improvement The correct answer is D. Maintaining and continuing improvement is included in the A component of the PDSA model. Determination of how changes will be implemented is part of P, implementation of the plan is included in D, and determination of the impact of the plan is included in S. Joint Commission Resources. Cost-Effective Performance Improvement in Hospitals. Oakbrook Terrace, IL: JCAHO; 2005:94. Q. Which statement best describes the "C" component of the FOCUS-PDSA performance improvement model? Identify a process to improve Develop a team Explain the current process Recognize sources of variation The correct answer is C. https://www.stuvia.com/user/quizbit07 During the C component of FOCUS-PDSA, the current process is explained. The process that needs improvement is identified in the F stage, development of the team is done during the O stage, and recognition of sources of variation is part of U. Joint Commission Resources. Cost-Effective Performance Improvement in Hospitals. Oakbrook Terrace, IL: JCAHO; 2005:94. Q. Which statement best describes the "D" component of the PDSA performance improvement model? Determine how changes will be implemented Implement the intervention Determine the impact of the intervention Maintain and continue improvement The correct answer is B. Determination of how changes will be made is part of the P component of PDSA and impact determination is considered a component of S. Joint Commission Resources. Cost-Effective Performance Improvement in Hospitals. Oakbrook Terrace, IL: JCAHO; 2005:94. Q. Which statement best describes the "O" component of the FOCUS-PDSA performance improvement model? Identify a process to improve Develop a team Explain the current process Recognize sources of variation https://www.stuvia.com/user/quizbit07 The correct answer is B. Development and organization of the team are included in O. Identification of the process to be improved is part of F, explanation of the current process is included in C, and recognition of sources of variation is included in U, or understanding the problem. Joint Commission Resources. Cost-Effective Performance Improvement in Hospitals. Oakbrook Terrace, IL: JCAHO; 2005:94. Q. Which statement best describes the "S" component of the PDSA performance improvement model? Determine how changes will be implemented Implement the intervention Determine the impact of the intervention Maintain and continue improvement The correct answer is C. Determination of how changes will be made is part of the P component, implementation of the plan is included in D, and maintaining the improvement is part of A. Joint Commission Resources. Cost-Effective Performance Improvement in Hospitals. Oakbrook Terrace, IL: JCAHO; 2005:94. Q. Which statement best describes the "U" component of the FOCUS-PDSA performance improvement model? Identify a process to improve Develop a team https://www.stuvia.com/user/quizbit07 Explain the current process Recognize sources of variation The correct answer is D. Identification of the process needing improvement occurs during the "F" stage of FOCUS-PDSA. Team formation occurs during the "O" stage of FOCUS-PDSA, and explanation of the current process occurs during the "C" stage. Joint Commission Resources. Cost-Effective Performance Improvement in Hospitals. Oakbrook Terrace, IL: JCAHO; 2005:94. Q. Which of the following is least likely to be documented? Work-related advice provided by the supervisor to the employee Employee appearance Employee availability Employee conduct The correct answer is A. Documentation of employee behavior includes conduct, performance, appearance, and work availability, which are a part of progressive discipline. Advice is a friendly offering but is not usually documented. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. Of the following, which is the type of skill that must develop within and be nurtured in both the personal and professional life of a manager? https://www.stuvia.com/user/quizbit07 Hard Soft Networking Communication The correct answer is B. Hard skills can be taught. Soft skills must develop and be nurtured within our personal and professional lives. Gould RA, Canter DD. Management matters. J Am Diet Assoc. 2008;108(11):1834-1836. Q. A consistent theme from the 2011 Dietetics Workforce Demand Study was that which of the following drives change for all areas of dietetics practice? Incidence rates for chronic diseases Costs associated with health care Changes to Medicare eligibility requirements Advances in technology The correct answer is D. Practitioners need to appreciate that informatics affects all areas of practice and is much broader than just EHRs. Other factors such as incidence rates for chronic diseases, costs associated with health care, and changes to Medicare eligibility affect some areas of dietetics practice much more extensively than others. Ayres EJ. Nutrition informatics competencies across all levels of practice: a National Delphi study. J Acad Nutr Diet. 2012;112(12):2042-2053. Q. Nutrition informatics computer skills include the ability to https://www.stuvia.com/user/quizbit07 access and locate information in the Academy's online Nutrition Care Manual. successfully write smart phone applications (apps). successfully complete a computer course in JavaScript. correctly identify on a schematic all parts of a personal computer. The correct answer is A. The Academy has determined that some computer skills—such as the ability to locate and access information in the Academy's online Nutrition Care Manual—are necessary for all RDNs. Other skills such as writing apps, learning to use JavaScript, and identifying computer parts are not considered to be skills need by all RDNs. Ayres EJ. Nutrition informatics competencies across all levels of practice: a National Delphi study. J Acad Nutr Diet. 2012;112(12):2042-2053. Q. What financial information is obtained by subtracting cost of goods sold from total sales in a given period? Gross profit Net profit Final profit Operating costs The correct answer is A. Net profit subtracts expenses from gross profit; final profit is merely another way of referring to net profit. Operating costs refer to expenses. Total sales less cost of goods is the gross profit. Edelstein S. Managing Food and Nutrition Services for Culinary, Nutrition, and Hospitality Professionals. Burlington, MA: Jones and Bartlett; 2007:245-248. https://www.stuvia.com/user/quizbit07 Q. Which of the following statements about the intensive behavioral therapy (IBT) benefit for obese Medicare Part B beneficiaries is true? Coverage for the benefit is granted in most care settings. In order to qualify, the beneficiary's BMI must be greater than 40. Continued treatment for obesity is contingent on weight loss assessed at the seventh month of treatment. RDNs may provide the service and bill Medicare using a unique physician identification number. The correct answer is C. The IBT bill is very clear that the benefit can only be provided by a physician (as of April 2013). It is true that qualifications are specific about BMI and the appropriate setting for receiving this benefit and treatment length is contingent on progress. Academy of Nutrition and Dietetics. Meeting the Need for Obesity Treatment: A Toolkit for the RD/PCP Partnership. Chicago, IL: Academy of Nutrition and Dietetics; 2012:3-6. Q. Which of the following must be included on the program evaluation review technique (PERT) chart? The amount of time needed to complete an activity The total cost associated with each activity The impact on labor cost if the project is delayed The degree of acceptance by consumers The correct answer is A. Activities and times are detailed on a chart for planning and evaluation control purposes. Cost, impact, and consumer acceptance are not included on the chart. https://www.stuvia.com/user/quizbit07 Hess MA. Review of Dietetics 2014-2016. Chicago, IL: Hess & Hunt Inc; 2014. Q. Which of the following is the evaluation tool used for effective planning and that controls functions of management? PERT chart MIS processing HACCP Strategic planning The correct answer is A. MIS processing and HACCP are not tools associated with functions of management. Strategic planning is a management process of determining long-term goals and the best approach to accomplish them. It is used to inform policies and operational decisions but not in evaluation. The program evaluation review technique, or PERT, chart is the evaluation tool for controlling management functions. Payne-Palacio J, Theis M. Foodservice Management Principles and Practice. 12th ed. Upper Saddle River, NJ: Prentice Hall; 2012. Q. A facility director is charged with evaluating whether it is worthwhile to complete a project. The best approach would be to conduct a productivity study. determine the startup funds needed. conduct a cost-to-benefit analysis. determine the number of people involved. The correct answer is C. https://www.stuvia.com/user/quizbit07 Cost-benefit analysis (CBA) estimates and totals the monetary value of the benefits expected to be derived from a project and compares those to the costs of the project to determine whether the planned project is worthwhile financially. For example, if the costs of remodeling a foodservice kitchen is $3.4 million and the expected revenue generated after the renovation is $2.7 million, then the renovation would be judged as not being a good investment. A cost benefit analysis would include all the other options listed as parts of the determination of project profitability. Hess MA. Review of Dietetics 2014-2016. Chicago, IL: Hess & Hunt Inc; 2014. Q. A manager always defers to her workers to reach an agreement among themselves, then she adopts the majority decision. Her leadership style is democratic. autocratic. consensus. participative. The correct answer is A. Autocratic leaders take total control, make decisions, and assume full responsibility. Consensus leadership requires the entire group to come to an agreement. Participative leadership seeks input from others before making a management decision, whereas democratic leaders accept the decision made by the group majority. Hudson NR. Management Practices in Dietetics. 3rd ed. San Diego, CA: Cognella Academic Publishing; 2013. Q. In classical management theory, the unity of command specifies that each unit should have a coordinated approach toward the same objective. each individual should be accountable to only one supervisor. https://www.stuvia.com/user/quizbit07 each facility should have only one manager. authority and responsibility flow vertically from high to low. The correct answer is B. A coordinated approach toward the same objective signifies unity of direction, whereas authority and responsibility flowing one way from high to low signifies a scalar chain. A facility, regardless of the size, can have as many managers as is needed. Each individual reporting to one supervisor signifies unity of command. Payne-Palacio J, Theis M. Foodservice Management Principles and Practice. 12th ed. Upper Saddle River, NJ: Prentice Hall; 2012. Q. Which of the following refers to McGregor's theory X? Most people not only accept but seek responsibility. Exerting physical and mental effort at work is as natural as play or rest. Most people will exercise self-control to achieve an organizational objective. Most people dislike work and will avoid it if possible. The correct answer is D. According to McGregor's theory, most employees must be controlled, directed, and coerced; they have little ambition, dislike work, are irresponsible, and will avoid work if possible. Options A, B, and C refer to the tenets of theory Y. Payne-Palacio J, Theis M. Foodservice Management Principles and Practice. 12th ed. Upper Saddle River, NJ: Prentice Hall; 2012. Q. A supervisor noted that the quality of work produced by an employee was declining because of excessive tardiness. The best initial course of action would be to https://www.stuvia.com/user/quizbit07 dismiss the employee for not working enough hours. report the employee to the facility manager. issue a verbal warning to the employee. transfer the employee to a flex-time position The correct answer is C. Transferring the employee to another position does not guarantee improved quality or punctuality. There was no indication that the employee work hours decreased to necessitate a change in employment status. Reporting the employee to the facility manager gives the impression that the supervisor cannot do his or her job. The supervisor should be able to document that the employee was given a verbal reprimand before further actions can be taken. Payne-Palacio J, Theis M. Foodservice Management Principles and Practice. 12th ed. Upper Saddle River, NJ: Prentice Hall; 2012. Q. Which of the following statements is true? Conceptual skills are most important at upper levels of management. Human skills are most important at lower levels of management. Human skills are most important at upper levels of management. Conceptual skills are most important at lower levels of management. The correct answer is A. Conceptual skills integrate all activities and interests of the organization; therefore, they are more important at the higher levels of an organization. Payne-Palacio J, Theis M. Foodservice Management Principles and Practice. 12th ed. Upper Saddle River, NJ: Prentice Hall; 2012. https://www.stuvia.com/user/quizbit07 Q. In conducting a value analysis, the production manager should bear in mind that all the following are true EXCEPT: price is only one factor to be considered. standards of quality vary. product improvements are always cost effective. many factors can affect value. The correct answer is C. Improving the quality of a product may cost more. It may not be worth the added cost and may not affect the overall value. Even if the product costs more, it may have little or no added value. Keiser J, DeMicco F, Grimes R. Contemporary Management Theory. 4th ed. Upper Saddle River, NJ: Prentice Hall; 2000. Q. As a manager, you were instructed to prepare a budget without relying on the figures from previous years. This is known as a top-down budget. bottom-up budget. baseline budget. zero-based budget. The correct answer is D. A top-down budget is prepared by top management and given to each operating units. In a bottom-up budget, individual units prepare their own budget that is then sent to upper management. A baseline budget starts with the previous budget and adjusts for current conditions. A zero-based budget starts with no previous figures before costs, outlay, and inflows are determined. https://www.stuvia.com/user/quizbit07 Keiser J, DeMicco F, Grimes R. Contemporary Management Theory. 4th ed. Upper Saddle River, NJ: Prentice Hall; 2000. Q. _____ should be up to date and reinforced with strong supervision. Personnel policies Employee evaluations Schedules Employee morale The correct answer is A. Personnel policies should reflect current realities of the workplace. Supervisors should employ these policies to ensure that employees are being treated fairly and expectations are consistent. Keiser J, DeMicco FJ. Contemporary Management Theory: Controlling and Analyzing Costs in Foodservice Operations. Upper Saddle River, NJ: Prentice Hall; 2000:225. Q. A continuous and systematic process in which decisions are made about intended future outcomes, and how success is measured and evaluated is known as: accountability. effectiveness. organizing. strategic planning. The correct answer is D. This is the definition of strategic planning: it is a continuous and systematic process in which people make decisions about intended future outcomes, how outcomes are to be accomplished, and how success is measured and evaluated. https://www.stuvia.com/user/quizbit07 Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. After reviewing the results of menu engineering, what is the best way to manage a puzzle? Remove the item from the menu. Decrease the menu item's selling price. Serve smaller portions of the menu item. Give the item top priority on the menu. The correct answer is B. Menu engineering is the practice of developing menus with the goal to encourage customers to buy certain items. Puzzle items are those that are profitable but not popular. One way to address puzzles is to change the selling price in order to encourage sales. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. Chin has written the following objective for her community nutrition program: "Women who are at least 60 years of age will perform at least 30 minutes of weight-bearing exercise three or more times per week." Which of the required components is missing from Chin's objective? Target population Time frame Action Measure of success The correct answer is D. https://www.stuvia.com/user/quizbit07 What it is (action), who it is (target), and when or time frame are all components of the objective. What is missing is the measure of outcome. Boyle MA, Holben DH. Community Nutrition in Action: An Entrepreneurial Approach. 6th ed. Boston, MA: Cengage; 2012. Q. Compared to a non-leader, which grouping of words best describes a leader? Copes with complexities, seeks to be understood, empowers Organizes, motivates, copes with complexities Seeks to be understood, perseveres, copes with change Copes with change, empowers, perseveres The correct answer is D. Effective leaders accept that change should and will occur and work with others in order to facilitate the pace and outcome of change. This empowers both themselves and others. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. Full-time employees generally work 236 days per year due to vacation and benefit days. Approximately how many employees are necessary for everyday coverage of full-time positions? 1.55 1.75 0.75 0.55 The correct answer is A. https://www.stuvia.com/user/quizbit07 365 days each year/236 full-time workdays= 1.55 FTE. 1.55 FTE is required for each FT position. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. Having the same or similar outputs result from different inputs is called: dynamic equilibrium. equifinality. synergy. interdependency. The correct answer is B. Equifinality is defined as same or similar output that can be achieved by using different inputs or by varying the transformation process. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. Systems thinking is the management approach to considering the entire organization when making decisions or allocating resources. Which is an example of systems thinking? Select a produce vendor who could deliver high-quality produce twice daily. Reschedule kitchen staff to prepare more foods from scratch to meet customer expectations. Develop a catering menu for department meetings to generate revenue for equipment purchases. Select cleaning chemicals that do not harm the environment. The correct answer is B. https://www.stuvia.com/user/quizbit07 Rescheduling kitchen staff to prepare food to meet customer expectations changes the kitchen and staff/resource entirely. Making a change to the produce delivery does not change the kitchen. Payne-Palacio J, Theis M. Foodservice Management: Principles and Practices. 12th ed. Upper Saddle River, NJ: Prentice-Hall; 2011: 49. Q. Total Quality Management is best described by which grouping of words? Processes, improvement, customer satisfaction Outcomes, meet standards, accreditation Proactive, empowerment, outcomes Prevention, standard procedures, diagnostic The correct answer is A. TQM is a philosophy wherein processes are refined with goal of improving performance in response to customer needs and expectations. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. What characteristic is KEY to an efficient and effective system? Continuous response and adaptation to the system Flow of resources Interdependency of parts Achievement of subunit objectives The correct answer is C. https://www.stuvia.com/user/quizbit07 Interdependency of units allows for interaction among units and continual relationship with others. An effective system requires integration of units and interdependency. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. What is the KEY element in disciplining employees? Identifying solutions to correct undesirable behavior Providing feedback Being consistent Identifying causes for unacceptable behavior The correct answer is C. Consistency allows an employee to feel that any other employee would receive the same discipline for committing the same offense. Disciplinary action is the result of an employee's behavior and not personality conflicts. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016. Q. What is the significance of a safe work environment? Decreases cost through decreased use of workman's compensation Demonstrates caring for employees Decreases cost through decreasing lost workdays All of the above The correct answer is D. https://www.stuvia.com/user/quizbit07 A safe work environment is where management cares about employee and works to educate employees on safe work practices. This will result in decreased lost workdays and workman's compensation costs. Keiser J, DeMicco FJ. Contemporary Management Theory: Controlling and Analyzing Costs in Foodservice Operations. Upper Saddle River, NJ: Prentice Hall; 2000:294-295. Q. What number of productive FTEs do you need for two 7-day-per-week positions, working 6:30 am to 3:00 pm, with a 30-minute lunch? 1.4 2 2.8 2.975 The correct answer is C. 2 × 8 hours × 7 days = (112 hours/40 hours week) = 2.8 FTES Keiser J, DeMicco FJ. Contemporary Management Theory: Controlling and Analyzing Costs in Foodservice Operations. Upper Saddle River, NJ: Prentice Hall; 2000:260. Q. What ratio measures the ability of an organization to generate excess income in relation to sales? Profitability Solvency Liquidity Activity https://www.stuvia.com/user/quizbit07 The correct answer is A. Profitability ratios measure a company's ability to generate excess income in relation to sales. Solvency refers to an organization's ability to meet its long-term debts while liquidity refers to the organization's ability to meet short-term debts. Activity refers to the rate at which an organization transfers non-cash assets into cash assets. Gregoire MB, Spears MC. Foodservice Organizations: A Managerial and Systems Approach. 9th ed. Upper Saddle River, NJ: Pearson; 2016.