Question 1

To help make the receiving function secure and efficient, the physical transfer of food and beverage products to the storage area should be the responsibility of:&#10;A) supplier delivery personnel.&#10;B) assigned staff from the property.&#10;C) the food and beverage controller.&#10;D) supplier delivery personnel or the food and beverage controller.

Accepted Answer

It is best for assigned staff from the property to handle the physical transfer of food and beverage products to the storage area as they are familiar with the property's policies and procedures for receiving goods. This helps ensure the security and efficiency of the receiving function. While supplier delivery personnel or the food and beverage controller may also be involved in the receiving process, it is recommended that the property's own staff take primary responsibility for the physical transfer of goods.

Question 2

As the inventory turnover rate decreases for a food and beverage operation:&#10;A) more money is being invested in inventory.&#10;B) less money is being invested in inventory.&#10;C) stockouts are likely to occur.&#10;D) products in storage move more quickly to production areas.

Accepted Answer

The inventory turnover rate is calculated by dividing the cost of goods sold by the average inventory. A decrease in inventory turnover rate means that the average inventory is increasing, which indicates that more money is being invested in inventory.

Question 3

Which of the following statements about food products classified as &#34;directs&#34; is TRUE?&#10;A) Usage rates and inventory levels determine the purchasing pattern for directs.&#10;B) Directs are always recorded in inventory records.&#10;C) Directs are usually considered part of the food costs for the day on which they are received.&#10;D) Directs are controlled by a minimum/maximum inventory system.

Accepted Answer

Directs are food products that are ordered and received on an as-needed basis, rather than being part of the regular inventory. As a result, they are usually considered part of the food costs for the day on which they are received. Usage rates and inventory levels do not determine the purchasing pattern for directs, and they may not always be recorded in inventory records. Directs are typically not controlled by a minimum/maximum inventory system because they are not part of the regular inventory.

Question 4

At the Bay Restaurant, the dates stamped on food products in production areas are usually older than the dates stamped on most of the same items held in storage. Which of the following best describes the inventory rotation method of the restaurant?

A) ABCD system
B) LIFO (last in, first out) system
C) FIFO (first in, first out) system
D) weighted average system

Accepted Answer

The fact that the dates stamped on food products in production areas are usually older than the dates stamped on most of the same items held in storage indicates that the restaurant uses a FIFO (first in, first out) inventory rotation method. This means that the oldest items are used or sold first, to ensure that items do not expire and go to waste.

Question 5

Storing and issuing controls help the food and beverage manager in which of the following ways?&#10;A) They help to keep products secure from theft.&#10;B) They curb waste.&#10;C) They track, record, and provide information necessary for the financial accounting system.&#10;D) All of the above

Accepted Answer

Storing and issuing controls help the food and beverage manager in all of the above ways, which includes keeping products secure from theft, curbing waste, and tracking, recording, and providing information necessary for the financial accounting system.

Question 6

A well&#173;designed food and beverage issuing system will:&#10;A) limit access to storage areas.&#10;B) assess quantities and costs of products removed from storage.&#10;C) match items removed from storage with actual production requirements.&#10;D) incorporate all of the above.

Accepted Answer

A well-designed food and beverage issuing system should limit access to storage areas, assess quantities and costs of products removed from storage, and match items removed from storage with actual production requirements. Incorporating all of the above will help to reduce waste, improve inventory control, and ensure that the right products are being used in the right quantities.

Question 7

Which of the following inventory valuation methods generally creates a higher total inventory value and a lower cost of sales?&#10;A) physical inventory valuation method&#10;B) perpetual inventory valuation method&#10;C) FIFO (first in, first out) valuation method&#10;D) LIFO (last in, first out) valuation method

Accepted Answer

FIFO (first in, first out) valuation method generally creates a higher total inventory value and a lower cost of sales compared to the LIFO (last in, first out) valuation method. In the FIFO method, the oldest inventory items are sold first, which means that the cost of goods sold reflects the cost of the oldest inventory items. This often results in a lower cost of goods sold and higher net income. Conversely, in the LIFO method, the newest inventory items are sold first, which means that the cost of goods sold reflects the cost of the newest inventory items. This often results in a higher cost of goods sold and lower net income.

Question 8

How would fresh meats be categorized by an ABCD inventory classification system?&#10;A) Class A: high in perishability and high in cost per serving&#10;B) Class B: low in perishability and high in cost per serving&#10;C) Class C: high in perishability and low in cost per serving&#10;D) Class D: low in perishability and low in cost per serving

Accepted Answer

Fresh meats are highly perishable and their cost per serving is generally high, so they would typically be classified as Class A items in an ABCD inventory classification system.

Question 9

Given the following information, calculate the inventory turnover rate for the month of March. Food Inventory End of February: $\$ 28,000$
Food Inventory End of March: $\$32,000$
Cost of Food Used in March: $\$ 195,000$

A) 6.09 times
B) 6.50 times
C) 6.96 times
D) 13.05 times

Accepted Answer

The answer of Given the following information, calculate the inventory...

Question 10

A key difference between radio frequency identification (RFID) technology and bar code technology in the inventory valuation process is that:&#10;A) bar code technology requires the placement of transponder tags on all products received from suppliers.&#10;B) RFID uses hand&#173;held wireless scanning equipment for inventory counting.&#10;C) bar code equipment is based on a weight&#173;per&#173;unit concept of inventory counting.&#10;D) RFID eliminates the need for line&#173;of&#173;sight reading.

Accepted Answer

RFID technology allows for non-line-of-sight reading, meaning that tags can be read without requiring a direct line of sight between the tag and scanner. Bar code technology requires line-of-sight scanning, meaning that the barcode must be visible to the scanner for it to be read.

Deck 7: Storing and Issuing Controls