Question 1

Which of the following statements about constructing a staffing guide is TRUE?&#10;A) A staffing guide should be based on the productivity rates of average employees.&#10;B) A staffing guide developed for one type of food and beverage operation is easily used by another type of food and beverage operation.&#10;C) A staffing guide should be developed for each department within a food and beverage operation.&#10;D) A staffing guide should be developed for each position within each department of a food and beverage operation.

Accepted Answer

D

Question 2

Which of the following positions in a food and beverage operation is least likely to have a work schedule that varies in relation to changes in business volume?&#10;A) dishwasher&#10;B) supervisor&#10;C) cook&#10;D) server

Accepted Answer

Supervisors typically have more stable schedules as they are needed to oversee operations regardless of business volume fluctuations.

Question 3

If the manager of a food and beverage operation wanted to emphasize productivity, as opposed to labor costs, labor performance standards would best be expressed in terms of:&#10;A) labor dollars.&#10;B) labor hours.&#10;C) variable labor.&#10;D) fixed labor.

Accepted Answer

Labor performance standards in terms of labor hours would emphasize productivity rather than labor costs because it focuses on the efficiency of the workers and the amount of output they can produce within a certain amount of time. This encourages employees to work more efficiently, which can increase productivity and overall profitability for the operation. Labor dollars or variable/fixed labor standards would be more focused on cost control rather than productivity.

Question 4

At the Fish Dish Restaurant, the forecast for Thursday afternoon's lunch period was 200 meals served. The manager used the restaurant's staffing guide to schedule employees to work and ended the lunch shift with total labor costs of $425. If the actual lunch revenue amounted to $1,250 and the budgeted lunch labor cost percentage for the month was 32 percent, how close to budget were the labor costs for Thursday's lunch period?

A) 2 percent over budget
B) 2 percent under budget
C) 16 percent over budget
D) 16 percent under budget

Accepted Answer

The budgeted labor cost percentage is 32% of the actual revenue, which is $1,250. Therefore, the budgeted labor cost is 0.32 * $1,250 = $400. The actual labor cost was $425, which is $25 more than the budgeted cost. The percentage over budget is ($25 / $400) * 100% = 6.25%, which rounds to 2% over budget.

Question 5

When constructing staffing guides, managers should:&#10;A) use the productivity rates of good employees as a basis to set labor standards for average employees.&#10;B) keep productivity rates at the levels initially established, despite increases in employee efficiency and proficiency.&#10;C) rely strongly on standards developed in the industry for other similar operations.&#10;D) incorporate all of the above points.

Accepted Answer

Using the productivity rates of good employees as a basis to set labor standards for average employees allows for a realistic and achievable standard to be set. Keeping productivity rates at initially established levels despite increases in employee efficiency and proficiency could lead to overstaffing and increased labor costs. Relying strongly on standards developed for other similar operations may not take into account the specific needs and challenges of the individual operation.

Question 6

Which of the following tools helps a food and beverage manager determine labor standards for each position and shift?&#10;A) variance analysis&#10;B) budgeted labor cost percentage&#10;C) national staffing averages&#10;D) position performance analysis

Accepted Answer

Position performance analysis helps a food and beverage manager determine labor standards for each position and shift by analyzing the performance of each individual in the respective position to determine the amount of time it should take to complete the required tasks. This helps in forecasting the required workforce for each shift and setting labor standards accordingly. Variance analysis is a tool to evaluate the difference between actual and budgeted results. Budgeted labor cost percentage indicates the percentage of total revenue that is budgeted for labor costs. National staffing averages provide information on the average number of employees required for a particular position in the industry.

Question 7

Which of the following staff positions are likely to have work schedules that vary in relation to changes in a restaurant's volume of business?&#10;A) compressed staff positions&#10;B) variable staff positions&#10;C) shared staff positions&#10;D) fixed staff position

Accepted Answer

Variable staff positions are typically schedule according to the volume of business a restaurant is experiencing. As business fluctuates, these positions may have varying schedules in order to meet the needs of the business. The other options, compressed staff positions, shared staff positions, and fixed staff positions typically have set schedules regardless of the restaurant's volume of business.

Question 8

Actual hours worked by the staff at the Steakhouse Restaurant exceeded scheduled labor hours by an average of 15 hours a week. If the average hourly wage for staff is $7 and the budgeted profit margin is 10 percent, how much additional revenue must be generated during the year to cover the unscheduled increase in labor costs?

A) $5,460
B) $8,320
C) $54,600
D) $83,200

Accepted Answer

The additional revenue must be 10 times the additional labor costs. The additional labor costs are 15 hours per week times 52 weeks per year times $7 per hour = $5,460. So the additional revenue must be $5,460 times 10 = $54,600.

Question 9

Which of the following statements about fixed and variable labor is TRUE?&#10;A) An unexpected increase in business volume will increase fixed labor expenses.&#10;B) Managers have more control over fixed labor expenses than over variable labor expenses.&#10;C) A goal of food and beverage managers should be to eliminate all fixed labor expenses.&#10;D) Fixed labor expenses are costs associated with the minimum number of employees needed to operate a business.

Accepted Answer

Fixed labor expenses refer to the costs associated with maintaining a baseline level of staff necessary for the operation of a business, regardless of fluctuations in business volume. This includes salaries for employees who work regular hours and are not dependent on the level of business activity, unlike variable labor expenses which fluctuate with business volume.

Question 10

Which of the following work scheduling techniques is used to adequately staff a food and beverage operation during periods of uneven work flows?&#10;A) compressed work schedules&#10;B) staggered work schedules&#10;C) expanded work schedules&#10;D) rotated work schedules

Accepted Answer

Staggered work schedules involve scheduling different employees to work at different times to match the varying workloads of the operation. This helps ensure that the necessary staffing levels are met during peak periods without overscheduling during slower periods. Compressed work schedules involve working longer days but fewer days per week, expanded work schedules involve increasing the overall number of working hours, and rotated work schedules involve rotating employees between different shifts or positions.

Deck 14: Implementing Labor Cost Controls