AHLEI CHAPTER 2
TESTED QUESTIONS AND COMPLETE SOLUTIONS
Question 1.
Comparing actual labor vs. budgeted labor
ANSWER
o The manager can review the actual labor costs and food and beverage revenue to date.
Question 2.
Bartender performance review
ANSWER
information from the daily beverage cost percentage worksheet also can be used to assess
each bartender's performance.
o Average beverage cost of sales = total percentage / number of shifts
Question 3.
Chapter 9
ANSWER
Question 4.
Adjustments of COGS
ANSWER
o Transfers to the kitchen: increase the cost of food sales and decrease beverage costs.
o Transfers from kitchen: decrease food expense and increase beverage expense.
o Complimentary: the cost of food and beverage sales can be reduced by their value, and the
costs can be transferred to the appropriate marketing account.
,Question 5.
Server Banking System
ANSWER
o Servers and bartenders use their own banks of money to collect payments from guests and
retain the collected revenue until they check out at the end of their shifts.
Question 6.
Cost of sales = beginning inventory + purchases - ending inventory
ANSWER
Question 7.
Revenue reports
ANSWER
enable managers to measure the sales of individual menu items by product category within
certain time frames.
o Information reported is used to assess potential revenues and to forecast revenue and
determine labor requirements for future shifts.
Question 8.
Past financial statements
ANSWER
o Provide cost information to define standards for the property's current operation.
o Disadvantage: inefficiencies in past operations may continue unnoticed if management
strives to only do as well as it did in past financial periods.
o If there is no variance between the cost standard and the actual food cost, operational
efficiency may be mistaken.
Question 9.
Revenue reporting problems
ANSWER
cost percentages are based in part on revenue totals; therefore, the problem may relate to
revenues rather than costs.
, Question 10.
More than one supplier will likely be able to quote prices and compete for the operations business.
ANSWER
Question 11.
Staggering work schedules
ANSWER
it is generally not useful for all staff members to begin and end shifts at the same time.
o Staggering shifts allows managers to ensure the greatest numbers of employees are working
during peak business hours.
o Staggered ending times ensure maximum worker efficiency.
Question 12.
Available storage space
ANSWER
Question 13.
Staffing guides and budgets
ANSWER
o When budgeted labor costs are based on the same productivity rates as the staffing guide, it
is relatively easy for managers to keep labor costs in line with budgeted goals.
o Within the staffing guide managers must:
1. Convert labor hours into labor dollars.
2. Determine the total labor cost.
3. Estimate the total food and beverage revenue.
4. Determine the labor cost percentage.
TESTED QUESTIONS AND COMPLETE SOLUTIONS
Question 1.
Comparing actual labor vs. budgeted labor
ANSWER
o The manager can review the actual labor costs and food and beverage revenue to date.
Question 2.
Bartender performance review
ANSWER
information from the daily beverage cost percentage worksheet also can be used to assess
each bartender's performance.
o Average beverage cost of sales = total percentage / number of shifts
Question 3.
Chapter 9
ANSWER
Question 4.
Adjustments of COGS
ANSWER
o Transfers to the kitchen: increase the cost of food sales and decrease beverage costs.
o Transfers from kitchen: decrease food expense and increase beverage expense.
o Complimentary: the cost of food and beverage sales can be reduced by their value, and the
costs can be transferred to the appropriate marketing account.
,Question 5.
Server Banking System
ANSWER
o Servers and bartenders use their own banks of money to collect payments from guests and
retain the collected revenue until they check out at the end of their shifts.
Question 6.
Cost of sales = beginning inventory + purchases - ending inventory
ANSWER
Question 7.
Revenue reports
ANSWER
enable managers to measure the sales of individual menu items by product category within
certain time frames.
o Information reported is used to assess potential revenues and to forecast revenue and
determine labor requirements for future shifts.
Question 8.
Past financial statements
ANSWER
o Provide cost information to define standards for the property's current operation.
o Disadvantage: inefficiencies in past operations may continue unnoticed if management
strives to only do as well as it did in past financial periods.
o If there is no variance between the cost standard and the actual food cost, operational
efficiency may be mistaken.
Question 9.
Revenue reporting problems
ANSWER
cost percentages are based in part on revenue totals; therefore, the problem may relate to
revenues rather than costs.
, Question 10.
More than one supplier will likely be able to quote prices and compete for the operations business.
ANSWER
Question 11.
Staggering work schedules
ANSWER
it is generally not useful for all staff members to begin and end shifts at the same time.
o Staggering shifts allows managers to ensure the greatest numbers of employees are working
during peak business hours.
o Staggered ending times ensure maximum worker efficiency.
Question 12.
Available storage space
ANSWER
Question 13.
Staffing guides and budgets
ANSWER
o When budgeted labor costs are based on the same productivity rates as the staffing guide, it
is relatively easy for managers to keep labor costs in line with budgeted goals.
o Within the staffing guide managers must:
1. Convert labor hours into labor dollars.
2. Determine the total labor cost.
3. Estimate the total food and beverage revenue.
4. Determine the labor cost percentage.
