Chapter 3 – Cost Control Review – Flashcards
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Prior to service, managers should taste each item to ensure it meets the operation's standard.
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True
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Poor storage procedures and facilities can greatly increase food costs due to waste and increased labor costs.
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True
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Revenue is the price an operation pays out in the purchasing and preparation for its products or the providing of its service.
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False
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Total food cost percentage is the relationship between sales and the cost of food to achieve those sales.
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True
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The service staff is the primary sales tool in most restaurant and food service operations.
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False
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The main categories of cost are food, beverage, labor, and
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overhead
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Which category of cost includes rent and gas/electricity?
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overhead
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It is common for operating budgets to be prepared
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monthly
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What is the formula for calculating average sales per customer?
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Total number of customers divided by the total dollar sales.
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A record of the number of portions of every item sold on a menu is called a
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sales history
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Which document lists all menu items that are going to be prepared for a given date?
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production sheet
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Which menu pricing method divides the total revenue by the number of seats, average seat turnover, and days open in one year?
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average check
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A compilation of sales and cost information for a specific period of time is presented in a(n)
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profit-and-loss report
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Another name for a profit-and-loss report is a(n)
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income statement
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What information is found at the bottom of the income statement?
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net earnings
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An income statement shows an operation's
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sales, cost of sales, and profit or loss over a period of time.
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The physical inventory at the beginning of a given period is called ___________ inventory.
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opening
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What is the formula for calculating food cost percentage?
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Total food cost / sales
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A restaurant's total food cost for April was $1,500 and its sales were $6,000. What is the food cost percentage?
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25%
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The form that shows how much product should be produced by the kitchen during a given meal period is called a(n)
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production sheet
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The contribution margin represents a menu item's profits in relation to
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overall profits
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Which menu pricing method multiplies raw food costs by a predetermined fraction?
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straight markup
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A restaurant wants a 30% food cost percentage on all menu items. If spaghetti and meatballs cost $2.95 per portion, how should it be priced (round up)?
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$9.85
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A restaurant sells baked ziti at a 50% markup. If the menu item costs $3, what is the selling price?
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$6.00
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If a gallon of tomato sauce costs $12 and yields 60 portions, what is the standard portion cost?
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$0.20
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The portion of dollars that a particular menu item contributes to overall profits is called the
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contribution margin
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If a quick-service line cook overcooks a batch of chicken fingers that yields 20 servings at $5 a serving, what is the revenue lost?
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$100.00
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A chart that shows employees' names and the days and times they are to work is called a(n)
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crew schedule
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The best time for a restaurant of food service operation to receive deliveries is
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when business is slow
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How often should fresh fish be delivered?
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every day
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How often should dry- or wet-aged meat be ordered and delivered?
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two times a week
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The document from a vendor that lists such details as items purchased, date of order, purchaser, and price is called a(n)
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invoice
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Which inventory method assumes that stock has been rotated during the month?
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FIFO
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An operation has 22 bottles of ketchup in inventory and each bottle costs $3.50. What is the total value of the bottled ketchup?
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$77.00
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A restaurant's food costs for a month were $12,600 and its food cost percentage was 30%. How much did the restaurant earn in sales?
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$42,000
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When management wants to minimize the value of the closing inventory, which method should be used?
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LIFO
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The amount of sales and operation is doing for a given time period is called
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business volume
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A lease and utilities can be classified as what cost?
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noncontrollable
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The cost of a food item is incurred when the item is
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consumed
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The primary selling tool in most restaurants is the
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menu
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Which closing inventory method multiplies the number of unites of each item by the most recent price paid for the item?
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Latest purchase price (FIFO)
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What is the formula to calculate the average sales per customer?
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total dollar sales / total number of covers
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A restaurant has a food cost percentage of 45%. This means that its food cost is 45% of
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total sales
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Food service managers plan their financial activities by preparing
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budgets
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Income from the sale of food item is called
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revenue
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Most operations can run historical sales and production reports from their _____________.
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POS
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________________ companies are one-stop shops that provide equipment, food, supplies.
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Full line supplier
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_______________ represents the dollar value of a food product in storage and can be expressed in terms of units, values, or both.
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inventory
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The ________________ method is used to cost an ingredient at the purchase price before any trim or waste is taken into account.
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as-purchased
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A(n) _______________ is the portion of dollars that a particular menu item contributes to overall profits.
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contribution margin
