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75 Cards in this Set
- Front
- Back
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What are 3 areas you need to control?
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spoilage
theft out of control inventory |
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what does a filet mignon represent?
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selling price point to the organization
amount that can be revenue when sold to a customer |
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what are 2 critical components to a successful storage operation?
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product integrity
product security |
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what is the biggest cause of loss in the storeroom?
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theft
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what is the second biggest cause of loss in the storeroom?
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spoilage
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what are 3 causes of spoilage?
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improper stock rotation
time/temperature abuse inadequate sanitation practices |
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what stock rotation method is the most used?
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FIFO - first in, first out
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What does the FIFO stock rotation method ensure?
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refrigerated, frozen and dry goods are rotated during storage
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The FIFO pricing method is a way of using the latest price to do what?
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value inventory
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The key to success of FIFO relies on how many people?
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2 people:
receiving clerk person using the product |
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What is the LIFO method?
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last in, first out
*not used often due to spoilage concerns |
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shrinkage causes what?
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yield loss, which increases food cost
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what 3 steps help slow the deterioration process?
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proper purchase
putting stock up promptly correct stock rotation |
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what is most important in holding perishable foods?
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proper time/temperature control
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at what temps should dry goods be stored?
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50-70
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at what temps should fresh fruit and veggies be stored at?
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varies by category, but generally 41 in the walk-in
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at what temp should eggs and dairy be stored?
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41 or below; eggs at 45
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at what temp should meat, fish and poultry be stored?
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41 or below
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In refrigerated areas, what do you need to prevent?
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odors, which are absorbed by other foods
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storage shelves should be labeled with what?
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name of the item and par stock amount
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all products should be labeled with what?
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name and the "use by" or expiration date
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one of the greatest threats to food while in storage is . . .
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theft
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one of the ways to help control theft is to establish what for each area?
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par stock
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another way to control theft is to make sure that trusted employees have what?
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keys for their area only
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what is par stock?
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the AVERAGE use of an item for a given period plus safety factor
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what is "issuing"?
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the process a manager follows to take food or beverages from storage
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what is an inventory?
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itemized list of goods and products, their on-hand quantity and dollar value
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which items should be under lock and key at all times?
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those high in value:
liquor wine steaks coffee packs |
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with known inventory, a manager can calculate what?
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cost of food sold
inventory turnover rate |
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what are the 2 types of inventory?
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physical
perpetual |
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what is physical inventory?
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actual physical count and valuation of all items on hand
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what is perpetual inventory?
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theoretical count based on goods received and issued. Tries to eliminate the need for frequent counting by adding to inventory when goods are received and subtracting items when they are requisitioned or transferred out
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in large operations, kitchens use which kind of inventory?
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perpetual; they use requisition, a form with specs about the items needed, to request them from the storeroom.
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a perpetual inventory is compared to an actual inventory to determine shrinkage, true or false?
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true
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what's a popular method for keeping track of liquor and wine?
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perpetual inventory
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inventory should be taken with the frequency of the income statement, true or false?
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true
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build what into your inventory process?
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Uniformity.
weigh or count items consistently use consistent inventory pricing method take inventory at consistent time of day. |
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what is an inventory breakdown?
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method of categorizing food and supplies, especially if they are separated on an income statement
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using 2 people to take inventory helps prevent what?
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"padding," to reduce food cost
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having an accurate physical inventory is a critical preparation step to what?
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inventory pricing
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there are 2 forms of consistency in inventory pricing. What are they?
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price for the item must be in the same unit as the count for the item.
you must use the chosen method through every period |
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what are the pricing methods for inventory?
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Fifo
Lifo averaged price actual |
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what is the FIFO pricing method?
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latest price paid is recorded
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what is the Lifo pricing method?
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oldest price paid is used
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what is the averaged price method?
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composite of all prices paid is averaged and used
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what is the actual price method?
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using actual price listed on inventory for all items
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The FIFO pricing method is also known as what?
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latest price method
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why is FIFO the most widely used inventory pricing method?
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easiest and quickest way to const an inventory (latest invoices)
tells management what product in storage is worth in today's prices |
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how do you calculate inventory price per unit?
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cost of food available, divided by number of units available = inventory price per unit
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which pricing method is the most accurate?
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actual price method, since real cost of each item is reflected in value of closing inventory
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what does extending the inventory mean?
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multiplying the number of units by the item's unit price.
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the ending inventory number is used to figure what?
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cost of food sold
inventory turnover rate |
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what steps do you need for a correct product inventory count?
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items counted
priced extended totaled |
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when closing inventory goes up, the cost of food sold goes?
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down
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what is padding?
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adding a value for nonexistent inventory to the value of the total inventory to understate actual costs
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what is inventory turnover?
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the measure of how quickly an item in storage is used
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an operation with low inventory turnover rate will have excess what?
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cash tied up and higher spoilage rate, so a higher food cost
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what is the No. 1 consideration banks look for when extending a loan?
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inventory turnover rate
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how do you calculate the inventory turnover rate?
2 steps . . . |
OI + CI, divided by 2 = average, then . . .
cost of food divided by average inventory = inventory turnover rate |
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a restaurant using more perishables than nonperishables should have a higher turnover rate than a place using more nonperishables, true or false?
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true
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the turnover rate is usually figured weekly, but if figured monthly, would be divided by what?
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4.3, the average number of weeks in a month
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what's the rule of thumb on how often, generally, inventory turns over?
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1-2 times a week
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food inventory should equal what compared to the weekly food cost?
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1.5 times the weekly food cost
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"transfer" is a form used to track what?
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items going from one food service unit to another
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what is daily food cost?
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an estimate of the cost based on requisitions, transfers and sales
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what's the math on figuring a daily food cost percent?
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Total up the daily requisitions.
Transfers out are subtracted. Transfers in are added. Divide the total by the number of sales to get the daily food cost percent. |
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when physical inventory is compared to perpetual, it's called what?
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actual versus book value
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if you have a variance between actual and perpetual inventory, it could mean what?
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food is missing from the storeroom
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actual price method is also known as . . .
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specific unit cost method
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inventory turnover rate is normally calculated how often?
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weekly
If monthly, divide by 4.3 (average number of weeks in a month) |
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daily food cost is an estimate of cost based on what?
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requisitions, transfers and sales
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inventory is an operation's control device to help management determine if product received and paid for is actually being used by the kitchen staff and turned into meals sold, true or false?
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true
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cost of food sold tells management what?
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if menu is priced correctly
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inventory turnover is a control device that tells how fast product in the storeroom is converted into sales, true or false?
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true
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comparing physical inventory to perpetual inventory tells management what?
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exactly how much loss is occurring due to spoilage and storage techniques
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