CA 225 COST CONTROLS QUIZ 1-4 UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

CA 225 COST CONTROLS QUIZ 1-4 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS

Question:
1. When significant variations with your planned results occur, as a foodservice manager you must:
Answer:
Identify the problem, determine the cause, and take corrective action

Question:
2. How is the term "expenses" defined in the textbook?
Answer:
The cost of the items required to operate the business

Question:
3. What is the formula for food cost %?
Answer:
Food cost / food sales

Question:
4. What is the equation for profit?
Answer:
revenue - expenses

Question:
5. A ________________ is simply a forecast or estimate of projected revenue, expense and profit
Answer:
budget

Question:
6. Many foodservice operations are changing from "one month" budget periods to periods of _________ in
order to make each period equal to the next.
Answer:
28 days

Question:
7. T or F: When considering costs, foodservice managers just need to remember that low costs are good
and high costs are bad.
Answer:
False

Question:
8. T or F: Non-profit institutions are only interested in generating enough revenue to cover their costs.
Answer:
False

, Question:
9. T or F: The sign of a good foodservice manager is that his or her actual costs are significantly lower than
what was budgeted.
Answer:
False

Question:
10. T or F: Security of your cost and customer information can be just as critical as accuracy, and not all
information should be accessible to all parties.
Answer:
True

Question:
11. What is the average amount of sales or volume over a changing time period?
Answer:
The rolling average

Question:
12. What is the formula for total guests served?
Answer:
Total sales /total guests served

Question:
13. How is the term sales history defined in the textbook?
Answer:
The systematic recording of all sales achieved during a predetermined time period

Question:
14. Sales this year - Sales last year =_______________
Answer:
Variance

Question:
15. Revenue forecast = Sales last year * (________________)
Answer:
1 + percentage increase estimate

Question:
16. Sales history helps you to:
Answer:
predict expenses, manage employees, and manage budgets effectively

Question:
17. What is the best definition for "fixed average"?
Answer:
The average of a specific time period