Deck 1: Overview of the Industry and the Managers Role

Question 1

The bulk of the industry consists of ______ eating places.

A) institutional
B) commercial
C) military
D) none of these answers is correct

Answer 1

B

Question 2

Communication is the ongoing process of exchanging information between different departments and people both within and outside an organization.

Answer 2

True

Question 3

What are the main factors behind higher food commodity costs in the United States?

A) weather-related production problems
B) increased use of some food commodities, such as corn, for biofuel uses
C) stronger global demand for food
D) all answers are correct

Answer 3

D

Question 4

In the United States, the Food Service Industry directly supports approximately ______ million jobs.

A) 2
B) 4
C) 7
D) 12

Question 5

A high inventory turnover ratio-a figure calculated to show how quickly a company is using products-may indicate that:

A) the unit is buying too much stock
B) the unit inventory is exposed to theft
C) the unit is not buying too much stock
D) the unit revenue is below forecast

Question 6

The manager's key job functions lie in cost control, specifically in the following areas:

A) planning for labor productivity controls
B) financial reporting, and other duties such as developing revenue strategies and expense control systems
C) evaluating and consulting
D) protection and maintenance of company assets
E) all answers are correct

Question 7

There are many approaches to forecasting. In selecting a specific method that suits the circumstances, which of the following are considered important criteria?

A) Is the method practical?
B) What resources and data must be available to make it work?
C) Is this method cost-effective?
D) Are its end results useful and reliable?
E) All answers are correct

Question 8

Globally, travel and tourism is the world's largest industry.

Question 9

Food safety and security will stop to be a top public policy issue for the industry into the future.

Question 10

According to the National Restaurant Association (NRA), on a typical day in 2008, the food service industry expected to post sales of:

A) $1.53 billion
B) $3 billion
C) $1 billion
D) $2.5 billion

Question 11

The main factors behind higher food commodity costs include stronger global demand for oil.

Question 12

When costs or expenses are greater than revenue, the company experiences profit.

Question 13

Successful forecasting is defined as predicting the consequences of a given decision or set of decisions over a given time.

Question 14

Costs that are incurred to make a product, like a chicken entrée, are called production costs.

Question 15

On a typical day in 2008, the food service industry expected to post sales of $1.53 billion.

Question 16

What is the biggest challenge and opportunity the food service industry faced in 2008?

A) maintaining customer loyalty
B) employee retention
C) high utility-gas costs
D) high insurance

Question 17

Increasing revenue suggests growth, whereas decreasing revenue indicates the possibility of decreased profits and other financial problems in the future.

Question 18

The term FTE refers to a measurement equal to:

A) one staff person consistently working overtime
B) a group of staff persons working a full-time work schedule
C) one staff person working a full-time work schedule for one year
D) two or more staff persons working a full-time work schedule for one year

Question 19

Revenue, a term often used interchangeably with income or sales, is money received by a business minus returns and discounts in a given period of time.

Question 20

The average annual household expenditure for food away from home in 2008 was:

A) $4,206
B) $2,676
C) $3,000
D) $1,500

Question 21

What are key performance indicators (KPI) used for?

Question 22

What is a full-time equivalent?

Question 23

If a hotel has 250 rooms, how many room nights are available in a thirty-day month?

Question 24

Define full-service restaurant.

Question 25

Explain the meaning of cost.

Question 26

Assume there are 7,500 room nights. If 5,800 rooms are occupied during a period, what is the occupancy percentage?

Question 27

What is a food and beverage forecast?

Question 28

A key phrase in the food and beverage manager's vocabulary is cost-effective controls. Why?

Question 29

Why is it important to analyze the inventory turnover ratio?

Question 30

Give an example of how Key Performance Indicator (KPI) for Inventory Turn is calculated.