Deck 10: Planning for Food Profit and Controls

Question 1

Assume that your beginning food inventory is $1,000. You've purchased $600 of goods and transferred $100 between departments. Your ending inventory is $950. What is the cost of goods consumed or used?

A) $900
B) $750
C) $950
D) $650

Answer 1

B

Question 2

actual food cost = = = 30%
Define profit.

Answer 2

Profit is what remains when you subtract expenses from revenue. As economist Joseph A. Schumpeter said, "Profit is the expression of value of what the entrepreneur contributes to the production."

Question 3

Assuming the menu contains items with various cost percentages, which of the following can be calculated prior to sales?

A) potential cost percentage
B) actual cost percentage
C) targeted cost percentage
D) both "potential cost percentage" and "targeted cost percentage"

Answer 3

D

Question 4

Using the information provided, calculate how many purchase units would be needed to prepare a roast beef dinner serving 600 customers. Menu Item Purchase Unit Portion Size Edible Yield %
Beef 1 pound 6 oz. 80%

A) 280 pounds
B) 282 pounds
C) 290 pounds
D) 300 pounds

Question 5

If the selling price of an item is $12.95, and the potential food cost is $3.55, what is the potential food cost percentage?

A) 27.1%
B) 25.9%
C) 27.4%
D) 27.5%

Question 6

You get the ideal menu price by dividing the cost of ingredients by the targeted cost percentage.

Question 7

If the total potential food cost for a menu item is $4.57, and the targeted food cost percentage is 30%, what is the targeted selling price?

A) $15.23
B) $15.50
C) $16.50
D) $15.15

Question 8

To determine unit cost, take the case cost of an item and divide it by the yield percentage. Then divide that result by the number of recipe units per case (Column 10 on the inventory worksheet).

Question 9

Potential cost is what you actually spend on the product.

Question 10

Let us assume that your records show $2,500 in food sales and $750 cost of goods consumed. What is the percentage of cost of goods consumed?

A) 30%
B) 40%
C) 25%
D) 29%

Question 11

The as-purchased price is your inventory cost and is not altered by yield percentages.

Question 12

Another factor affecting production losses is recipe accuracy. Each recipe must be both tested and standardized.

Question 13

Having an actual food cost percentage below the potential food cost percentage demonstrates that the Chef is doing an excellent job.

Question 14

Using the information provided, calculate the number of pounds needed to serve a forecasted weekly customer count of 3,200 covers. Item Standard Portion Edible Yield % Menu Mix
Steak 12 oz. 75% 32%

A) 980
B) 1,050
C) 1,000
D) 1,024

Question 15

In a perfect world the potential cost will not be equal to the actual cost, but as there is no such thing as a perfect world, there will always be no differences between potential cost and actual cost.

Question 16

Although manual cost control systems are typically more time-consuming than computerized systems, they can be just as accurate.

Question 17

A food inventory taken at the Inn on January 1, 1998, totaled $3,500. During the month the business purchased $32,000 worth of food products. Prior to business operation on February 1, 1998, the Inn calculated a food inventory of $4,200. The Inn brought in $112,000 in food sales during the month of January. What is the cost of food sold for the month of January?

A) $32,700
B) $31,300
C) $39,700
D) none of these answers is correct

Question 18

Actual cost means the ideal amount your company wants to spend; it is your goal, or what you have budgeted to spend.

Question 19

First, consider your total sales amount as 100 percent. Next, subtract the percentages of your other business expenses, including labor, from that 100 percent. This leaves a percentage that must be divided between two areas: profit and food cost. Subtract the desired profit percentage from this number, and the remaining percentage will be the percentage you can spend on food. What is the end result?

A) potential cost
B) actual cost
C) targeted ideal cost
D) all answers are correct

Question 20

Use of the term "ounce" in recipes requires a designation as fluid or weight.

Question 21

How do you derive the cost of goods used?

Question 22

What is the formula for deriving unit cost?

Question 23

Give examples of food products that have a predictable and measurable amount of shrinkage or waste.

Question 24

What is the equivalent weight of the following items?
Common Unit Name Abbreviation Equivalent
pound WZ ___________?
gallon FZ ___________?
#10 can FZ ___________?
quart FZ ___________?

Question 25

actual food cost = = = 30%
Define potential or theoretical cost.

Question 26

Beef tenderloin has a yield percentage of 65.5. The original, as-purchased price is $6.69. What is the end-product price?

Question 27

Give examples of why actual food cost is different from potential cost.

Question 28

Why is important to update potential cost calculation?

Question 29

What is actual food cost?