Deck 14: Staff Planning and Labor Cost Control

Question 1

Which of the following is directly related to the precise amount of time needed to perform any job function?

A) performance standards
B) productivity standards
C) staffing guides
D) labor standards

Answer 1

B

Question 2

If cost of food sold is 30%, and labor costs are 32%, what is the prime cost?

A) 70%
B) 62%
C) 30%
D) 32%

Answer 2

B

Question 3

Because of the high cost of labor, it is essential to control these costs regardless of the time, energy, and expense involved.

Answer 3

True

Question 4

If staffing guidelines call for 40 hours of hourly labor to produce 100 covers on Monday, and for 60 hours to produce 200 covers on Friday, what is the actual operating efficiency on Monday?

A) 75% efficiency
B) 100% efficiency
C) 90% efficiency
D) 80% efficiency

Question 5

In a twenty-eight day month, if 1,100 hours are worked by salaried exempt employees, the full time equivalent is: 9.8 FTE.

Question 6

According to the NRA, in which food service category(s) does the cost of wages, salaries, and employee benefits exceed the cost of food sold?

A) full service, check average over $10
B) full service, check average under $10
C) limited service, fast food
D) all answers are correct

Question 7

Harassment can include quid pro quo.

Question 8

Scheduling should be based on:

A) company sales
B) volume of business
C) capture ratio
D) occupancy

Question 9

If operating standards indicate that the labor cost per cover should be $2.00, and labor costs for the period were $1,000 with 450 covers served, what is the actual variance in labor cost per cover?

A) $200
B) $150
C) $900
D) $100

Question 10

Why is staff planning vital to success?

Question 11

The cost of training employees to perform multiple jobs typically increases the cost of labor.

Question 12

In controlling labor costs, direct observation of employees and customer service is superior to accounting analysis.

Question 13

The terms salary and wages are often used interchangeably, but there can be an important difference. Salary usually applies to managers, supervisors, and executives who receive a fixed amount each pay period regardless of the number of hours worked.

Question 14

Raising wages can lower total labor costs when:

A) labor efficiency increases
B) employees have more experience
C) a greater number of people apply to the company
D) productivity analysis is performed more often and accurately

Question 15

Full time equivalent reporting is useful for all the following except:

A) comparison of labor efficiency to competitors
B) comparison of labor efficiency between departments
C) establishing performance standards
D) revealing the costs of overtime

Question 16

Employers need to act preventatively-ensuring that all staff know about the company's expectations for a harassment-free workplace, and that appropriate sanctions are in place and utilized when necessary.

Question 17

Gross pay includes all of an employee's regular pay, overtime pay, commissions, and bonuses-after any payroll deductions.

Question 18

When scheduling staff, a manager focused on maximizing profitability should place more emphasis on performance and operating standards than any other factor.

Question 19

Employers are responsible for harassment that they knew about or should have known about, unless they immediately act, in good faith, to correct the problem.

Question 20

If the average nonovertime wage rate is $5.00 per hour, but hourly employees average 50 hours per week, what is the actual wage average per hour?

A) $5.00
B) $250.00
C) $5.50
D) $7.50

Question 21

What competing interests need to be balanced in scheduling?

Question 22

How can a manager decide what products should be outsourced?

Question 23

If the average wage rate increases from $5.00 to $5.50, without an increase in productivity, and labor costs were 35%, what will be the new labor cost percentage?

Question 24

If total sales were $12,000 and the cost of labor was $4,200, what is the labor cost percentage?

Question 25

What factors can cause actual labor cost to deviate from standard costs?

Question 26

If sales drop to $10,000 and the cost of labor to $4,000, what is the labor cost percentage?

Question 27

What is the use of FTE analysis?

Question 28

What are labor standards and why are they critical to proper scheduling?

Question 29

In a thirty-day month, if 1,000 hours are worked by hourly and/or salaried nonexempt employees, what is the number of full time equivalents?