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101 Cards in this Set
- Front
- Back
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The cost of goods to a food service establishment is the expense incurred when the gods are...
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consumed
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Managers and bookkeepers are typically...
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fixed-cost employees
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Cost percentages are useful to managers in that they provide a means of comparing
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costs relative to sales for two or more periods of time
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Which of the following cost-to-sale ratio analysis is appropriate?
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Comparing the second week in September with the second week in October
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Costs that can be changed in the short term are called
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controllable costs
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Food, beverage, and payroll costs are collectively known as
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prime cost
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What can be used to calculate cost per dollar of sales?
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Cost/Sales
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What would be an appropriate menu price for a veal marsala entree if the cost percent is 25% and the food cost for the item is $4?
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$15.99 (4/.25=16)
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In general, foodservice establishments that operate at relatively high margins of profit per item
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have higher labor cost and lower food cost percent
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In order to institute control in a foodservice operation, the first step is to
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establish appropriate standards
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The established methods used to prepare products or perform jobs are known as...
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standard procedures
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Which of the following is a sales forecasting activity and an estimate of costs incurred in the process of generating those sales?
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Operating budget
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What is the final step in the control process?
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Take appropriate action to correct deviations from standards
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The relationship between the costs incurred in instituting and maintaining a single control or control system and the benefits or savings derived by doing so is called the...
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cost/benefit ratio
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The goal of cost control is to...
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eliminate excessive costs controllable categories of expenses
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Which of the following are used to find the degree of excellence of raw materials finished products, and employees work?
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Quality standards
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In larger operations, management's observations must often be abstracted and inferred from...
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records and reports
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An operating budget is usually prepared using...
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historical information from previous budgets and operating statements
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A collection of interrelated and interdependent control techniques is called a...
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control system
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the ratio of cost to benefit should always be...
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less than one
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When profit is zero, a business is said to be operating...
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at its break-even point
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Which of the following would a restaurant want to have?
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high contribution margin
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Lowering contribution margins will require which of the following if a foodservice establishment wants to achieve a given target profit?
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Increasing volume
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If current records of Brandy's Bistro show fixed cost at $80,000, cost of labor at $47,000, cost of sales at $65,000, and profit at $4,500, what is the establishment's total dollar sales?
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$196,500 S=VC+FC+P
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For the first quarter of the year, a hotel foodservice operation had fixed costs of $230,000, variable costs of $420,000, and sales of $845,000. What was the operation's variable rate?
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.497 (VC/S=VR)
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Last year, the China Inn had fixed costs of $433,330 and variable costs of $345,000. If sales were $925,000, what was the operation's profit?
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$146,700 (FC+VC-S=P)
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To determine an establishment's break-even point, which of the following should be set to zero?
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Profit
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Beef burritos sell for $8.95. If the variable cost of the menu item is $6.80, what is the contribution margin for the item?
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$2.15 (CM=selling price-VC)
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An adequate contribution margin will cover fixed costs of an operation and also...
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provide for an additional amount beyond break-even that equals the desired profit
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Simulation exercises provide one way for foodservice operators to...
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train employees
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Centralized purchasing systems are widely used by...
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chain operations
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Food items that can be stored in the packages or containers in which they are received are called...
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staple foods
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What helps ensure that all foods purchased will be of the desired quality for their intended use?
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Standard purchase specifications
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The availability of sources of supply tends to be greatest...
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in major metropolitan areas
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Which of the following is considered a "traditional" means for accessing price information?
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Telephone quotations
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Desired quality can be more readily obtained with the use of
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centralized purchasing
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Which of the following requires extensive food knowledge and thorough investigation?
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Quality verification
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Verification of the date on which food was received can be provided by...
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an invoice stamp
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The big problem faced by those trying to train skilled receiving personnel is the...
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vast knowledge of foods these workers must have
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Every time food is delivered to an establishment, it is usually accompanied by an...
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invoice
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The first step of the standard receiving procedure is to...
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verify that the quantity, quality, and price for each item delivered conforms exactly to the order placed
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Which of the following typically appears on an invoice?
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Unit price
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Which of the follwoing items are charged immediately, upon receipt, to cost of goods?
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Directs
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foods categorized as stores are...
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able to be held in inventory for a period of time
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Who typically checks the quality of delivered foods in a foodservice establishment?
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Receiving clerks
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T or F: Unplanned costs are those arising from spoilage, pilferage, or waste.
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True
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T or F: Forecasting is a primary means for monitoring the performance of employees who store and issue food.
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False
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T or F: Standard portion costs typically are calculated once in the life of a restaurant-just prior to opening day.
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False
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T or F: Arranging a sales history by day of the week facilitates identification of sales trends for an overall operating period.
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True
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T or F: A normal first step in forecasting food sales for a given day is to predict anticipated dollar sales volume for that day.
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False
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Which of the following is one of the causes of unplanned costs that can develop while food is in storage?
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Waste
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Stock should be rotated according to..
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first-in, first-out
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The cost of Directs for a given day may be obtained from...
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the Receiving Clerk's Daily Report for that day
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Directs become part of food cost...
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when the food is received
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A written requisition is a form listing...
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items needed from stores
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Which of the following tends to be artificially high on days when all directs received are not been consumed?
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Daily cost of food
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Multiplying an item's unit value by the number of units issued is called...
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extending the requisition
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A food department uses wine from a beverage department to create a sauce in the larger hotel
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An example of intraunit transfer
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One benefit of standard portion size is...
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greater customer satisfaction
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The purpose of a standard recipe is to
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maintain consistent quality of any item
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Which of the following is commonly used to measure portions of soup?
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Volume
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A written record of the number of portions of each menu item sold every time that item appeared on the menu is called a..
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sales history
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The standard for controlling production volume is to determine and produce, for any menu item, the number of portions that, on any given day, is likely to be...
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sold
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In which way are data typically arranged in a sales history?
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By entree item
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The ratio of portion sales for a given menu item to total portion sales for all menu items is known as the...
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popularity index
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The ratio of portion sales for a given menu item to total portion sales for all menu items is known as the
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popularity index
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The first step in forecasting portion sales is to
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predict total anticipated volume
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A production sheet is used to
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set production goals for chefs and other production staff
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Developing sales history data has become simpler and faster than inthe past with the use of
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POS terminals
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How many ounces in a one and 3/4 liter container?
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59.2
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How many ounces in 1.5 pounds?
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24
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Physical inventory is taken
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whenever management wants to take it
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Which of the following automatically becomes the opening inventory for the next period?
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Closing inventory for the period
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Monthly liquor cost and liquor cost percent are often not truly useful for monitoring operations because they fail to meet which important criteria?
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Frequency an timeliness
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Changes in cost-to-sales ratios may often be traced to...
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changes in the sales mix
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The value of closing inventory based on records indicating purchases and issues is called...
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book inventory
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The agreed-upon cost of goods or services used to measure other costs is called
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standard cost
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One way to change an undesirable forecasted food cost percent is to
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change sales prices
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The difference between actual costs and standard costs is called
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potential savings
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Overpurchasing, spoilage, and improper portioning can lead to differences between...
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actual and standard costs
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Unique menu items created to increase sales volume are referred to as...
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signature items
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The most widely used approach to menu pricing is to...
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match competitors' prices
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The primary sales tool in most restaurants is the
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menu
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Failure to account for all food served to customers and employees will result in
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distortion of the cost-to-sales ratio
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Dividing the number of units sold by the total number of units sold for all items yields which of the following...
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menu mix percent or popularity index
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Duplicate checks (Dupes) are given to...
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kitchen personnel
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A menu item for which contribution margin is high while sales volume is low
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puzzle
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Items to be removed from a menu are labeled as
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dogs
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What is produced by the fermentation of malted grain?
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beer
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Type of beer most commonly consumed in the United States
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lager beer
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The alcoholic content of a distilled beverage is stated in terms of...
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proof
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One purpose of beverage-purchasing controls is to ensure that ingredients are purchased...
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at optimum prices
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The state government sells some or all alcoholic beverage through its own network of stores in which of the following?
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Control state
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The three classifications of alcoholic beverages are...
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beers, wines,and spirits
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Which of the following contains wine and fruit juice
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Wine cooler
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A customer who orders a "scotch and soda" should be given which of the following?
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Pouring brand
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Precise quantity that must be on hand at all times.
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Par stock
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At which type of bar do bartenders serve the public face to face?
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Front bars
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Which of the following is a highly structured method for controlling issues?
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Requisition system
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The prevention of pilferage is one of the objectives of beverage..
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cost control
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Which of the following can be stored indefinitely at normal room temperatures without harming product quality?
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Spirits
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