ManageFirst Controlling Foodservice Cost Practice Test

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• Opening inventory is defined as the value of inventory at which point?
• What is the cost of sales for the period, given opening inventory 3,890; purchases 74,381; closing inventory 2,996?
• Which item is used as the example for par level in the problem?
• Which statement best defines inventory turnover?
• What is the primary purpose of waste reports in food service cost control?
• Inventory represents the dollar value of what in a foodservice operation?
• What is the primary purpose of a food dating labeling system?
• A standardized lamb stew recipe makes 25 portions. It accounts for 27% of menu sales, and Tuesday's forecasted customers are 450. How many portions should be produced?
• If the budget for food and beverage costs drops to 280,000 and total revenue remains at 800,000, what is the new food and beverage cost as a percentage of sales?
• If a restaurant's expenses exceed its sales, how is the operation described?
• What is the formula for food cost percentage?
• Food cost is an example of what type of cost?
• Which statement is true about perishable and non-perishable goods?
• Which practice is a corrective action for cost control related to labor cost?
• What is the primary objective of portion control in a foodservice operation?
• Before product specifications can be developed, what step is required according to the material?
• An operation uses one case of tomato sauce per day and has a par level of three cases. Orders are made once a week. Today is order day, and there are three cases left. How many should be ordered?
• Which statement about budgets is true?
• Which describes a typical transfer in foodservice operations?
• Which category describes items with a short shelf life, such as milk and cheese?
• Count is used to identify portion size by count. Which example demonstrates this method?
• Which metric best measures labor efficiency in a restaurant?
• Which budget is described as a long-term budget?
• Which method is described for determining the menu selling price by including expenses and profits and dividing by portions?
• Which action best describes applying a standard recipe conversion factor when increasing yields?
• Employee turnover rate is calculated as which of the following formulas?
• Which purchase method is described as combining multiple items from a single supplier to simplify ordering?
• Which statement describes plate cost?
• Which document is used before preparing a purchase order?
• Which term describes the total sum of product costs included in a single meal?
• Which factor should be considered when budgeting as a cost-control tool?
• If the Other costs category increases by 40%, how much would profits for PanPan Noodle House be, assuming that all other items do not change?
• Which statement correctly describes a semivariable cost?
• What does inventory turnover measure?
• Actual costs should be compared against which type of costs?
• Which items are credits to cost of sales?
• FIFO stands for what inventory valuation method?
• What is the definition of Food Cost in a restaurant operation?
• If the desired profit is 15%, what is the ideal total expense?
• In the cost control process, which action best represents the first step?
• Which item is commonly listed as a direct operating expense category?
• Proper purchasing involves which of the following?
• Which budget is typically used for long-range capital planning?
• EP price is defined as which of the following?
• Which figure is commonly cited as the prime cost standard in restaurant operation?
• What is the major benefit of EP costing method?
• What is the restaurant and foodservice industry standard for prime cost?
• Which test measures the amount of shrinkage that occurs during the trimming of a meat product?
• Which statement describes semivariable costs?
• Which document should employees present to have products issued?
• In the example income statement, which two categories comprise the prime cost?
• Which statement correctly expresses how labor cost percentage is calculated?
• What is a benefit of implementing cost controls?
• Which corrective action directly reduces costs by adjusting serving size?
• If average inventory increases and cost of food sold stays the same, what happens to the inventory turnover rate?
• AP stands for which term in inventory terminology?
• Closing inventory is defined as the value of inventory at which point?
• Who is typically in charge of developing product specifications?
• Which expression correctly represents the cost of sales formula?
• Given opening inventory of 3,890; purchases of 74,381; closing inventory of 2,996; and sales of 233,479, what is the food cost percentage?
• The Factor Method is best suited for operations with historical data that show a difference between sales and food cost. Which statement describes this usage?
• If the hotel lobby coffee and pastry bar had requisitions of $565, transferred in goods of $25, and transferred out goods of $50, what would its daily food cost be?
• Which statement correctly describes inventory's role in budgeting?
• Which of the following best describes the use of a credit memo form?
• Perishable goods are typically purchased on which frequency pattern?
• Which statement correctly differentiates AP and EP?
• If the amount of an ingredient was 0.9 lb after converting a recipe, what would it probably be rounded to?
• Quiche Lorraine will be served on tomorrow's menu. Each quiche yields 6 servings. If forecasted sales are 40 servings, how many quiches should be produced?
• Given an opening inventory of $9,000, a closing inventory of $12,000, and a cost of food sold of $22,000, what would the inventory turnover for this establishment be?
• Which statement correctly describes a key provision of the Uniform Commercial Code?
• An ordering system can be improved by
• Quantity standards measure which of the following?
• Which statement about waste reports is true?
• Which practice helps prevent spoilage and control costs?
• Which item is used in determining cost of sales?
• What is par level?
• Which action is used to adjust inventory records when items are spoiled and cannot be sold?
• Using the formula Opening Inventory + Purchases - Closing Inventory, calculate the cost of sales given Opening 4,080; Purchases 50,000; Closing 2,500.
• The Butcher Test is used to measure which of the following?
• When should perishable goods be purchased?
• At a local bistro, total fixed costs for June were $176,432. In that month, 8,652 covers were served. What was the fixed cost per cover for June?
• Which statement describes variable costs?
• Fixed costs per period are generally described as which?
• If labor costs rise but other costs and revenue remain unchanged, what happens to prime cost?
• What is the formula for average daily food cost?
• Which statement about fixed costs is true?
• In the Texas Restaurant Association Markup Method, how is the menu selling price determined?
• Which is the correct sequence for developing a standard recipe?
• Which statement best describes cost controls?
• Fixed Cost is defined as which of the following?
• In the seven-step recipe cost card process, what is Step 4?
• Which of the following is an example of a cost of sales credit?
• Which step should managers consider to ensure hot food is served hot?
• Which item is commonly listed as a direct operating expense category?
• Over portioning is unfair to which stakeholder?
• The primary reason for using a production chart is to
• Which product is identified as best suited for standing order purchasing method in the given example?
• Which forecasting formulation describes the customer forecast process?
• Quality standards refer to which concept?
• LIFO stands for which inventory valuation method?
• If cost of food sold is $5,000 and average inventory is $1,000, what is the inventory turnover rate?
• Which statement defines opening inventory?
• Production planning data can be based on which management input?
• Which statement about the Factor Method is true?
• What does a purchase order indicate in the procurement process?
• Which set of items is used to calculate basic food cost?
• Which document is sent to the supplier to request delivery of goods?
• Which corrective action involves reviewing supplier purchases to control costs?
• A taste test is part of what managerial function?
• What does a food dating labeling system do?
• Which type of costs are described as the most important to control in many foodservice operations?
• Extended value of a stock item with unit cost 12.50 and 40 units?
• An uncontrollable cost is best described as
• Total labor cost consists of which elements?
• Standardized recipes primarily help ensure what outcome?
• Which of the following is a common feature of POS systems in quick-service operations?
• Which term refers to the price of items BEFORE any trim or waste is considered?
• A cost that increases or decreases in direct proportion to sales is known as a
• What is FIFO?
• Which statement defines closing inventory?
• In recipe scaling, the conversion factor is used to adjust ingredient quantities when changing yields.
• What is the formula used to extend an inventory?
• Sales should be tracked in which of the following ways?
• Prime cost includes which categories of expenses?
• Which tools are commonly used to portion ingredients to ensure consistency?
• Generally, what is the highest expense in restaurant and foodservice operations?
• Calculate the average check per customer given weekly sales of 9,300 and a weekly customer count of 258.
• Which of the following is a labor cost forecasting method?
• Prime cost is comprised of which two cost categories?
• In budgeting, if revenues increase by 3% and total expenses increase by 2.5%, budgeted profit will generally:
• Under portioning is unfair to which group?
• The standing order purchasing method is best suited for which product?
• What is the purpose of using liquor control systems?
• Given opening inventory $2,000 and closing inventory $1,500, what is the average inventory?
• Which factor directly affects labor costs?
• In inventory management, what does transferring in refer to?
• Which figure is used in the numerator when calculating the inventory turnover rate?
• Which item is NOT typically included in the contents of standardized recipes?
• The conversion factor on the standardized recipe should be which value?
• To whom is a purchase order sent?
• Inventory turnover rate is calculated as cost of food sold divided by what?
• What is the primary purpose of forecasting in restaurant cost management?
• Which two key documents should be compared during receiving by the receiving agent?
• Which outcome would indicate that cost control standards are being met?
• Who is expected to meet standards set by managers?
• Which purchase method involves obtaining price quotes from multiple suppliers to compare costs?
• Which items have longer shelf life, such as oil and cocoa?
• A production chart in food production is typically created using which data?
• If you need 100 portions and a recipe yields 25 portions per batch, how many complete batches are required?
• Which action is an appropriate corrective measure for cost control?
• In forecasting, which component is used to adjust for expected changes in demand?
• Which item is categorized as an indirect factor affecting labor costs?
• Which action most improves an ordering system's effectiveness?
• Which recipe form lists all ingredients at the top with numbered procedural steps listed below?
• Which item is listed as a cost of sales item?
• In the seven steps to creating a recipe cost card, what is Step 7?
• Which is the most important cost for a restaurant or foodservice manager to control?
• Which action helps control inventory costs?
• A loss occurs when which condition exists?
• Which statement about revenue reporting from a POS system is true?
• Rent is typically considered what type of cost?
• A cover is defined as which of the following in foodservice operations?
• Which expression yields the average inventory?
• Prime cost represents a major portion of a restaurant's total cost.
• Which formula expresses the food cost percentage?
• Which statement best reflects a labor cost practice to increase efficiency?
• What is the formula for average inventory?
• To bring new employees up to speed on the existing purchasing process, an operation should use which tool?
• A controllable cost is best described as
• A production schedule is based on
• What is the major advantage of developing standardized recipes?
• Rent and insurance typically are examples of what type of cost?
• Which purchasing method is used primarily by franchised chains?
• Which of the following is a credit to cost of sales?
• What type of inventory is counted, priced, extended, and totaled to determine the organization's on-hand stock?
• Standardized recipes help ensure compliance with accurate purchasing by providing what?
• Which of the following is typically non-perishable?