Question 1

When significant variations from planned results occur foodservice managers must

Accepted Answer

The logical sequence for addressing significant variations from planned results involves first identifying the problem to understand what went wrong, then determining the cause to understand why it went wrong, and finally taking corrective action to fix the issue and prevent it from happening again.

Question 2

Professional foodservice managers are different from many other managers who manufacture products because foodservice managers

Accepted Answer

Foodservice managers are unique in that they often have direct contact with the ultimate consumer, unlike many other managers in manufacturing sectors who do not interact with the end-users of their products.

Question 3

An operation's expenses are the

Accepted Answer

Operation's expenses refer to the costs associated with running the business, which includes the costs of items required to operate the business effectively.

Question 4

Management's view of the proper amount of expense required to generate a given level of sales is referred to as

Accepted Answer

Ideal expense reflects management's view of the necessary expense to achieve a certain sales level, focusing on the optimal spending needed to support business activities efficiently.

Question 5

Complete the formula: Revenue - Desired Profit =

Accepted Answer

The formula "Revenue - Desired Profit = Ideal Expense" is used to determine the maximum allowable expenses to achieve a desired profit level.

Question 6

What is the first step in the Five-step management process?

Accepted Answer

The first step in the Five-step management process is Planning. This involves setting goals and deciding how to achieve them.

Question 7

Which is a major foodservice expense category all managers must learn to control?

Accepted Answer

Labor costs are a major expense in the foodservice industry, often representing the largest controllable expense. Managers must learn to effectively manage labor costs to ensure profitability.

Question 8

What is an expense that would be included in an operation's cost of food?

Accepted Answer

Coffee is directly related to the food products being served, making it a part of the cost of food.

Question 9

What is the food and beverage cost percentage achieved by The Tampopo Noodle House?

Accepted Answer

The food and beverage cost percentage is calculated by dividing the total cost of goods sold (COGS) by the total sales, then multiplying by 100 to get a percentage. If The Tampopo Noodle House has a COGS of $150,000 and total sales of $400,000, the calculation would be ($150,000 / $400,000) * 100 = 37.5%.

Question 10

What is the Total Expense amount for The Tampopo Noodle House?

Accepted Answer

The Total Expense amount for The Tampopo Noodle House is $700,000.

Question 11

What is the Profit achieved by The Tampopo Noodle House?

Accepted Answer

The Profit achieved by The Tampopo Noodle House is $100,000.

Question 12

What is the profit percentage achieved by The Tampopo Noodle House?

Accepted Answer

The answer of What is the profit percentage achieved by...

Question 13

If the desired profit for The Tampopo Noodle House was 15% of sales, what amount of profit should it have achieved on revenue of $800,000?

Accepted Answer

To find the desired profit, multiply the revenue by the desired profit percentage: $800,000 * 15% = $120,000.

Question 14

A manager generated a food and beverage cost of $1,575 in one week, and achieved a 28% food and beverage cost percentage in that week. What is the amount of food and beverage revenue the manager achieved in the week?

Accepted Answer

The food and beverage cost percentage is calculated by dividing the cost by the revenue and then multiplying by 100. So, if the cost is $1,575 and the cost percentage is 28%, the equation to find the revenue (R) is $1,575 = 28% of R, or $1,575 = 0.28R. Solving for R gives R = $1,575 / 0.28 = $5,625.

Question 15

What is a term that means the same thing as a foodservice operation's revenues?

Accepted Answer

The term "revenues" in the context of a foodservice operation refers to the total sales dollars the operation achieves from its business activities, not the profit, cost, or remaining dollars after expenses.

Question 16

In what cost category do managers record nonalcoholic beverage expenses?

Accepted Answer

The answer of In what cost category do managers record...

Question 17

What is the formula managers use to calculate a foodservice operation's profits?

Accepted Answer

The formula to calculate a foodservice operation's profits is Revenue - Expense = Profits. This formula subtracts the total expenses from the total revenue to determine the profit.

Question 18

What is the formula managers used to calculate a foodservice operation's Total Expense Percentage?

Accepted Answer

The formula to calculate a foodservice operation's Total Expense Percentage is Total Expense divided by Revenue. This gives managers insight into what percentage of the revenue is being consumed by expenses.

Question 19

Last month a manager's food expense equaled $30,000. Labor expense for the month equaled $26,000, and other expenses equaled $12,000. Revenue for the month was $85,000. What was this manager's total expense percentage?

Accepted Answer

Total expenses = Food expense + Labor expense + Other expenses = $30,000 + $26,000 + $12,000 = $68,000. Expense percentage = (Total expenses / Revenue) * 100 = ($68,000 / $85,000) * 100 = 80%.

Question 20

A manager creates a 6-month staff salary budget. How much of the salary budget can this manager spend each month and still stay within the budget?

Accepted Answer

To stay within a 6-month budget, the manager can spend 1/6 of the budget each month. Calculating 1/6 as a percentage: (1/6) * 100% = 16.67%.

Quiz 1: Managing Revenue and Expense