Deck 5: Monitoring Food and Beverage Product Costs

Question 1

A foodservice operation's combined food and beverage costs are often referred to as the cost of

A) sales.
B) purchases.
C) goods consumed.
D) goods available for sale.

Answer 1

A

Question 2

Food service operations typically report their cost of sales both by the total amount spent and the

A) number of guests served.
B) total number of menu items sold.
C) amount spent as a percentage of sales.
D) total value of all items held in inventory.

Answer 2

C

Question 3

What is the formula used to calculate a food cost percentage?

A) Cost of Food Sold x Food Sales = Food Cost %
B) Cost of Food Sold ÷ Food Sales = Food Cost %
C) Food Sales - Cost of Food Sold = Food Cost %
D) Food Sales ÷ Cost of Food Sold = Food Cost %

Answer 3

B

Question 4

What is subtracted from cost of goods sold when managers calculate their food cost percentages?

A) Prime costs
B) Variable labor expense
C) Costs of "comp" meals
D) Employee meal costs

Question 5

What is its cost of food sold if an operation's Beginning Inventory equals $5,000, Ending Inventory equals $2,000, Purchases equal $1,500 and Employee Meals equal $500?

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

Question 6

Ending Inventory as calculated at the closing of an accounting period is also used as the

A) Beginning Inventory for the next accounting period.
B) Beginning Inventory for the previous accounting period.
C) Cost of Goods Consumed for the next accounting period.
D) Cost of Goods Consumed for the previous accounting period.

Question 7

In what cost category should foodservice managers record the value of employee meals?

A) Food
B) Labor
C) Direct Operating Expense
D) General and Administrative

Question 8

In the last accounting period, a food service director served 12,000 student meals, had a cost of food consumed of $36,500, and incurred $1,000 of employee meal costs. What was this director's cost per meal served in the accounting period?

A) $2.88
B) $2.96
C) $3.04
D) $3.13

Question 9

A food service operation on a military base served 3,200 meals in an accounting period and incurred a total cost of food sold in the period of $11,040. What was the operation's cost per meal for the period?

A) $2.90
B) $3.15
C) $3.45
D) $4.90

Question 10

An operation's Beginning Inventory for an accounting period equaled $15,000. Ending Inventory for the period equaled $14,000, Purchases equaled $21,500 and Total Cost of Sales was $21,000. What was the amount of this operation's Employee Meals in the period?

A) $1,000
B) $1,500
C) $2,000
D) $2,500

Question 11

What would be the effect on his cost of food formula if a manager accidentally overstated the value of his operation's ending inventory?

A) Total Cost of Sales would be overstated
B) Total Cost of Sales would be understated
C) Total Cost of Food Available for Sale would be overstated
D) Total Cost of Food Available for Sale would be understated

Question 12

An operation incurred $8,000 in cost of beverage sold during an accounting period. The beverage cost percentage for the period was 20%. What were the operation's beverage sales for the period?

A) $25,000
B) $30,000
C) $35,000
D) $40,000

Question 13

A bar operation achieved $92,000 in beverage sales for an accounting period. For that period, it had a beginning inventory of $25,000. Ending inventory was $22,000 and beverage purchases equaled $20,000. What was the bar's beverage cost percentage for the period?

A) 15%
B) 20%
C) 25%
D) 30%

Question 14

Prior to accounting for product transfers, a manager calculates her food cost as 32.3% and her beverage cost as 22.5%. Total transfers from her kitchen to the bar equal $1,000 and total transfers from the bar to the kitchen equal $500. After these transfers have been made

A) both the food and beverage cost % will increase.
B) the food cost % will decrease and the beverage cost % will increase.
C) the food cost % will increase and the beverage cost % will decrease.
D) both the food and beverage cost % will decrease.

Question 15

A bar operation had total beverage cost of $40,000 for an accounting period. For that period, its beer cost was $5,000, wine cost was $15,000, and spirit cost was $20,000. What proportion of this operation's total beverage cost was its beer cost?

A) 12.5%
B) 14.5%
C) 16.5%
D) 18.5%

Question 16

An operation's six-column food cost estimate will be most accurate when the operation's beginning inventory is

A) equal to its daily purchases.
B) less than its daily purchases.
C) equal to its ending inventory.
D) less than its ending inventory.

Question 17

A manager buys fresh carrots in 20-pound cartons. After the carrots have been cleaned, trimmed, and chopped each carton yields 17 pounds of carrots (EP). What is the waste percentage for fresh carrots?

A) 13%
B) 15%
C) 17%
D) 19%

Question 18

A chef buys 50 pounds of fresh casaba melon for making fruit salad. The waste percentage on the melons is 45%. After processing the 50 pounds of melon, how much fresh casaba will the chef have available for making the fruit salad?

A) 22.5 pounds
B) 23.5 pounds
C) 25.5 pounds
D) 27.5 pounds

Question 19

A manager purchases fresh fish for $9.60 a pound. After cleaning and filleting the product the waste percentage for the fish is 34%. What is the EP cost per pound for this fish item?

A) $15.00
B) $17.50
C) $20.00
D) $22.50

Question 20

A manager calculated that her attainable product cost for an accounting period was $29,000. Her actual product cost for the period was $29,580. What was the manager's operational efficiency ratio for this period?

A) 92%
B) 94%
C) 102%
D) 104%

Question 21

Which area should be of greatest concern to beverage managers when hosts or sponsors are charged per-person prices for open bars?

A) Bartenders over portioning
B) Bartenders under portioning
C) The monitoring of full bottle counts
D) The monitoring empty bottle counts

Question 22

Beverage managers can use a hydrometer to help prevent product

A) waste.
B) dilution.
C) spoilage.
D) evaporation.

Question 23

Mystery shoppers in the food service industry must

A) announce their arrival.
B) be experienced servers.
C) be experienced managers.
D) do their work anonymously.

Question 24

A standardized recipe for chili cost $56.00 to produce. The recipe yields 100 portions. Each portion is 8-ounces. What would be the cost per portion if the chef reduces the portion size of this item from 8-ounces to 7-ounces?

A) $0.49
B) $0.51
C) $0.53
D) $0.55

Question 25

Who is most directly responsible for the sales mix achieved in a food service operation?

A) Servers
B) Customers
C) Managers
D) Owners

Question 26

When utilizing the USAR, managers should report their cost of sales in terms of its total amount and its percentage of sales.

Question 27

The formula used to calculate a Food Cost % is: Food Sales ÷ Cost of Food Sold.

Question 28

Cost of food sold is the actual amount of all food expenses incurred by an operation minus its cost of employee meals.

Question 29

If an operation achieved $20,000 in sales in an accounting period and had a cost of food sold of $5,000 in the same period, the operation's food cost percentage for the period is 40%.

Question 30

Because the cost of food items used in the production of alcoholic beverages is minimal, it is not usually worth the time to document the value of product transfers from the kitchen to the bar area.

Question 31

A six-column form can be used to estimate an operation's food cost percentage on a daily or weekly basis.

Question 32

Managers use standardized recipe cost sheets to calculate their total recipe costs and their individual portion costs.

Question 33

Most kitchen theft by employees deals with the removal of money rather than food products.

Question 34

Head size has no effect on the cost per serving of draft beer.

Question 35

Sales mix is defined as the series of consumer purchasing decisions that result in an operation's specific food or beverage cost percentage.