PGA PGM LEVEL 2: FOOD AND BEVERAGE: EXECUTIVE MANAGEMENT
TEST QUESTIONS WITH ACCURATE SOLUTIONS.
1) Standard drink cost is $1.75 and the drink sells for $5.25. Calculate the
_ _ _ _ _ _ _ _ _ _ _ _ _
contribution margin percentage. -- Answer ✔✔ 66% _ _ _ _ _ _
2) The PGA General Manager asks the Food and Beverage Manager for a monthly
_ _ _ _ _ _ _ _ _ _ _ _ _
report, including the prime cost percentage calculation. Monthly labor was $5680,
_ _ _ _ _ _ _ _ _ _ _
cost of goods sold was $2,100, and total sales was $10,800. What is the prime cost
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
percentage? -- Answer ✔✔ 72%
_ _ _ _ _
3) A bottle of wine that costs $13.50 pours approximately 5.25 glasses of wine. Each
_ _ _ _ _ _ _ _ _ _ _ _ _ _
glass of wine sells for $9. What is the bottle sales value? -- Answer ✔✔ $46.80
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
4) Standard revenue is projected at $785.50. The actual product used was 230.75 oz.
_ _ _ _ _ _ _ _ _ _ _ _ _
Each drink is 1.2 oz and sells for $5.25 each. What is the variance between the
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
actual revenue and standard revenue? -- Answer ✔✔ $425.93
_ _ _ _ _ _ _ _
5) What is necessary to have before a facility can be planned and laid out? -- Answer
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
✔✔ Staffing needs, menu, calculating a break-even point, revenue forecasts,
_ _ _ _ _ _ _ _ _ _
expected customer traffic, competitor activities, anticipated local and national
_ _ _ _ _ _ _ _ _
economic changes, promotions and special events. _ _ _ _ _
6) Standard revenue of drinks sold was $858.00. The standard cost of drinks sold was
_ _ _ _ _ _ _ _ _ _ _ _ _
$257.40, and the actual cost of drinks sold was $308.88. Calculate the actual cost
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
of drinks sold percentage. -- Answer ✔✔ 36%
_ _ _ _ _ _ _
7) Why might a candidate with the necessary skills be the appropriate choice to hire
_ _ _ _ _ _ _ _ _ _ _ _ _ _
as a supervisor rather than a top server who has many years of experience and
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
knows the operation? -- Answer ✔✔ You don't want to qualify someone based on
_ _ _ _ _ _ _ _ _ _ _ _ _ _
technical skills rather than administrative ones. _ _ _ _ _
, 8) The standard cost of drinks sold for a bottle of wine during March was $337.50.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
The actual cost of drinks sold was $369.50. Given the variance, what should the
_ _ _ _ _ _ _ _ _ _ _ _ _ _
Food and Beverage Manager assess? -- Answer ✔✔ Actual cost minus Standard
_ _ _ _ _ _ _ _ _ _ _ _
Cost. It is $32 more than it should have been.
_ _ _ _ _ _ _ _ _
9) What three payroll cost components are needed to determine total labor costs in
_ _ _ _ _ _ _ _ _ _ _ _ _
Food and Beverage for a given period of time? -- Answer ✔✔ Management payroll,
_ _ _ _ _ _ _ _ _ _ _ _ _ _
benefits payroll and direct payroll. _ _ _ _
10) A bottle of wine costs $22.99 per 24.3-ounce bottle. Bartenders pour each
_ _ _ _ _ _ _ _ _ _ _ _
customer a 4-ounce glass of wine. What is the standard cost of one glass of wine? -
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
- Answer ✔✔ $3.83
_ _ _
11) Which of the four guidelines for staffing a food and beverage operation is the key
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
to a successful operation? -- Answer ✔✔ Plan the operation and then execute the
_ _ _ _ _ _ _ _ _ _ _ _ _ _
plan, identify typical staffing levels, review other factors affecting staffing needs,
_ _ _ _ _ _ _ _ _ _ _
establish anticipated payroll costs _ _ _
12) The Food and Beverage Manager calculates that his revenue from drinks sold has
_ _ _ _ _ _ _ _ _ _ _ _ _
decreased, but his drink costs have increased. What beverage control could be
_ _ _ _ _ _ _ _ _ _ _ _
used to correct this problem? -- Answer ✔✔ Beverage cost analysis.
_ _ _ _ _ _ _ _ _ _
13) The General Manager observes low efficiency of production compared to kitchen
_ _ _ _ _ _ _ _ _ _ _
payroll costs. After changing the number of entrees from fifteen to ten, what else
_ _ _ _ _ _ _ _ _ _ _ _ _ _
could be done to increase productivity? -- Answer ✔✔ Making the service system
_ _ _ _ _ _ _ _ _ _ _ _ _
faster, changing the POS system to something more efficient and reliable
_ _ _ _ _ _ _ _ _ _
14) What are the most important objectives of beverage control for management? --
_ _ _ _ _ _ _ _ _ _ _ _
Answer ✔✔ Focusing on the actions of the employees, attain a projected sales
_ _ _ _ _ _ _ _ _ _ _ _ _
mix, making sure that production employees receive higher wages than service
_ _ _ _ _ _ _ _ _ _ _
employees
15) A private club has chosen to switch from using the American service method to
_ _ _ _ _ _ _ _ _ _ _ _ _ _
using the French service method in its dining room. Given this decision, what is a
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
likely result? -- Answer ✔✔ Labor costs will go up. You will need more people,
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
TEST QUESTIONS WITH ACCURATE SOLUTIONS.
1) Standard drink cost is $1.75 and the drink sells for $5.25. Calculate the
_ _ _ _ _ _ _ _ _ _ _ _ _
contribution margin percentage. -- Answer ✔✔ 66% _ _ _ _ _ _
2) The PGA General Manager asks the Food and Beverage Manager for a monthly
_ _ _ _ _ _ _ _ _ _ _ _ _
report, including the prime cost percentage calculation. Monthly labor was $5680,
_ _ _ _ _ _ _ _ _ _ _
cost of goods sold was $2,100, and total sales was $10,800. What is the prime cost
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
percentage? -- Answer ✔✔ 72%
_ _ _ _ _
3) A bottle of wine that costs $13.50 pours approximately 5.25 glasses of wine. Each
_ _ _ _ _ _ _ _ _ _ _ _ _ _
glass of wine sells for $9. What is the bottle sales value? -- Answer ✔✔ $46.80
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
4) Standard revenue is projected at $785.50. The actual product used was 230.75 oz.
_ _ _ _ _ _ _ _ _ _ _ _ _
Each drink is 1.2 oz and sells for $5.25 each. What is the variance between the
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
actual revenue and standard revenue? -- Answer ✔✔ $425.93
_ _ _ _ _ _ _ _
5) What is necessary to have before a facility can be planned and laid out? -- Answer
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
✔✔ Staffing needs, menu, calculating a break-even point, revenue forecasts,
_ _ _ _ _ _ _ _ _ _
expected customer traffic, competitor activities, anticipated local and national
_ _ _ _ _ _ _ _ _
economic changes, promotions and special events. _ _ _ _ _
6) Standard revenue of drinks sold was $858.00. The standard cost of drinks sold was
_ _ _ _ _ _ _ _ _ _ _ _ _
$257.40, and the actual cost of drinks sold was $308.88. Calculate the actual cost
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
of drinks sold percentage. -- Answer ✔✔ 36%
_ _ _ _ _ _ _
7) Why might a candidate with the necessary skills be the appropriate choice to hire
_ _ _ _ _ _ _ _ _ _ _ _ _ _
as a supervisor rather than a top server who has many years of experience and
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
knows the operation? -- Answer ✔✔ You don't want to qualify someone based on
_ _ _ _ _ _ _ _ _ _ _ _ _ _
technical skills rather than administrative ones. _ _ _ _ _
, 8) The standard cost of drinks sold for a bottle of wine during March was $337.50.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
The actual cost of drinks sold was $369.50. Given the variance, what should the
_ _ _ _ _ _ _ _ _ _ _ _ _ _
Food and Beverage Manager assess? -- Answer ✔✔ Actual cost minus Standard
_ _ _ _ _ _ _ _ _ _ _ _
Cost. It is $32 more than it should have been.
_ _ _ _ _ _ _ _ _
9) What three payroll cost components are needed to determine total labor costs in
_ _ _ _ _ _ _ _ _ _ _ _ _
Food and Beverage for a given period of time? -- Answer ✔✔ Management payroll,
_ _ _ _ _ _ _ _ _ _ _ _ _ _
benefits payroll and direct payroll. _ _ _ _
10) A bottle of wine costs $22.99 per 24.3-ounce bottle. Bartenders pour each
_ _ _ _ _ _ _ _ _ _ _ _
customer a 4-ounce glass of wine. What is the standard cost of one glass of wine? -
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
- Answer ✔✔ $3.83
_ _ _
11) Which of the four guidelines for staffing a food and beverage operation is the key
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
to a successful operation? -- Answer ✔✔ Plan the operation and then execute the
_ _ _ _ _ _ _ _ _ _ _ _ _ _
plan, identify typical staffing levels, review other factors affecting staffing needs,
_ _ _ _ _ _ _ _ _ _ _
establish anticipated payroll costs _ _ _
12) The Food and Beverage Manager calculates that his revenue from drinks sold has
_ _ _ _ _ _ _ _ _ _ _ _ _
decreased, but his drink costs have increased. What beverage control could be
_ _ _ _ _ _ _ _ _ _ _ _
used to correct this problem? -- Answer ✔✔ Beverage cost analysis.
_ _ _ _ _ _ _ _ _ _
13) The General Manager observes low efficiency of production compared to kitchen
_ _ _ _ _ _ _ _ _ _ _
payroll costs. After changing the number of entrees from fifteen to ten, what else
_ _ _ _ _ _ _ _ _ _ _ _ _ _
could be done to increase productivity? -- Answer ✔✔ Making the service system
_ _ _ _ _ _ _ _ _ _ _ _ _
faster, changing the POS system to something more efficient and reliable
_ _ _ _ _ _ _ _ _ _
14) What are the most important objectives of beverage control for management? --
_ _ _ _ _ _ _ _ _ _ _ _
Answer ✔✔ Focusing on the actions of the employees, attain a projected sales
_ _ _ _ _ _ _ _ _ _ _ _ _
mix, making sure that production employees receive higher wages than service
_ _ _ _ _ _ _ _ _ _ _
employees
15) A private club has chosen to switch from using the American service method to
_ _ _ _ _ _ _ _ _ _ _ _ _ _
using the French service method in its dining room. Given this decision, what is a
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
likely result? -- Answer ✔✔ Labor costs will go up. You will need more people,
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
