Question 1

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

Accepted Answer

The combined food and beverage costs in a foodservice operation are typically referred to as the cost of sales, which represents the total cost of food and beverage products sold to customers.

Question 2

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

Accepted Answer

Cost of sales in food service operations is commonly reported as a percentage of sales, which helps in understanding the relationship between the cost of goods sold and the total sales revenue.

Question 3

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

Accepted Answer

The correct formula to calculate food cost percentage is Cost of Food Sold ÷ Food Sales. This formula gives the percentage of sales spent on food.

Question 4

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

Accepted Answer

Employee meal costs are subtracted from the cost of goods sold to accurately calculate food cost percentages, as they are not part of the food sold to customers.

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?

Accepted Answer

The cost of food sold is calculated as: Beginning Inventory + Purchases - Ending Inventory - Employee Meals = $5,000 + $1,500 - $2,000 - $500 = $4,000.

Question 6

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

Accepted Answer

Ending Inventory at the close of one accounting period becomes the Beginning Inventory for the next period, as it represents the unsold goods carried over into the new period.

Question 7

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

Accepted Answer

The answer of In what cost category should foodservice managers...

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?

Accepted Answer

The cost per meal is calculated by dividing the total cost of food consumed, including employee meal costs, by the number of meals served. Thus, ($36,500 + $1,000) / 12,000 = $37,500 / 12,000 = $3.125. However, since none of the options exactly match this calculation, the closest option, which is $3.13 (Option D), is actually the correct answer. My initial indication of Option B as the correct answer was incorrect. The correct answer should be D, based on the calculation provided.

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?

Accepted Answer

The answer of A food service operation on a military...

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?

Accepted Answer

The calculation for the cost of goods sold (COGS) is Beginning Inventory + Purchases - Ending Inventory. In this case, it's $15,000 + $21,500 - $14,000 = $22,500. The Total Cost of Sales is $21,000, which includes COGS and Employee Meals. Therefore, Employee Meals = Total Cost of Sales - COGS = $21,000 - $22,500 = -$1,500. Since Employee Meals cannot be a negative expense, it indicates an error in the calculation approach. Correctly, Employee Meals are the difference between the calculated COGS and the Total Cost of Sales provided, which means Employee Meals = $22,500 - $21,000 = $1,500.

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?

Accepted Answer

COverstating the ending inventory would increase the total cost of food available for sale because ending inventory is added to the cost of purchases to determine this total. However, it would also result in the total cost of sales being understated, as the formula for calculating the cost of sales is the cost of food available for sale minus the ending inventory. If the ending inventory is overstated, it would subtract more from the total available, thus reducing the cost of sales more than it should.

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?

Accepted Answer

The beverage cost percentage is calculated as (Cost of Beverage Sold / Beverage Sales) * 100. To find the Beverage Sales, rearrange the formula: Beverage Sales = Cost of Beverage Sold / (Beverage Cost Percentage / 100). Plugging in the numbers: $8,000 / (20 / 100) = $8,000 / 0.2 = $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?

Accepted Answer

The beverage cost percentage is calculated as (Beginning inventory + Purchases - Ending inventory) / Beverage sales. In this case, the beverage cost percentage is ($25,000 + $20,000 - $22,000) / $92,000 = $23,000 / $92,000 = 25%.

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

Accepted Answer

Transferring $1,000 from the kitchen to the bar increases the cost of goods sold for beverages, raising the beverage cost percentage. Conversely, transferring $500 from the bar to the kitchen decreases the cost of goods sold for food, lowering the food cost percentage.

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?

Accepted Answer

The beer cost proportion is calculated as ($5,000 / $40,000) * 100% = 12.5%.

Question 16

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

Accepted Answer

An operation's food cost estimate is most accurate when the beginning inventory is equal to its ending inventory, as this indicates that the total amount of food used is directly related to the purchases and sales within the period, without significant inventory level changes affecting the calculation.

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?

Accepted Answer

The waste percentage is calculated by subtracting the yield (17 pounds) from the original weight (20 pounds), dividing by the original weight, and then multiplying by 100. So, the calculation is ((20 - 17) / 20) * 100 = 15%.

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?

Accepted Answer

The answer of A chef buys 50 pounds of fresh...

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?

Accepted Answer

EP cost per pound = Purchase price per pound / (1 - Waste percentage)= $9.60 / (1 - 0.34)= $9.60 / 0.66= $14.54 (rounded to the nearest cent)

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?

Accepted Answer

The operational efficiency ratio is calculated by dividing the attainable (or standard) cost by the actual cost and then multiplying by 100 to get a percentage. So, the calculation would be ($29,000 / $29,580) * 100 = 98.04%, which rounds to 98%, but since this option is not available, it seems there was a mistake in the interpretation of the question or in the provided options. Given the options, the closest correct approach to calculate an efficiency ratio would typically involve comparing actual costs to standard or expected costs, but the provided answer choices do not align with the correct calculation based on the given numbers.

Quiz 5: Monitoring Food and Beverage Product Costs