Manage First Controlling Foodservice Costs Final Exam Review Questions
and Answers
-Accounts payable represents the amount of money
that an operation owes suppliers from which it has
purchased goods, products, or services
-The first step of the accounts payable process begins
when an invoice is brought to the manager's office.
-Next, the manager needs to make sure that the invoice
What is accounts payable?
is addressed to the correct organization.
-The manager needs to make sure that the invoice is
signed by one of the operation's employees, indicating
that item amounts are correct and contents are intact.
-If everything is correct, the manager should stamp the
invoice "Approved," which signifies that it should be
paid. After the invoice is approved it needs to be coded.
That is, if an invoice contains flour and vodka, the flour
should be coded under food costs, and vodka should
be coded under the beverage costs category.
• Pay invoices on a predetermined schedule
established by the business, not the vendors.
The manager should • Make sure all invoices that are paid are accurate and authentic.
oversee accounts payable • Minimize the amount of time and expense in
activities with these goals in processing accounts payable paperwork.
mind:
-Meaning "as purchased cost"
-The as purchased (AP) method is used to cost an
ingredient at the purchase price prior to any trim or
waste being taken into account.
AP Cost -In the AP method, all ingredient quantities are listed
on the standardized recipe in the form in which they
are purchased.
, -"Ten pounds of onion, diced" is an example of AP,
as the recipe is calling for 10 pounds of onion, as
purchased. In this case, the chef would start with 10
pounds of whole onion, peel and dice it, and add the
onion to the recipe. The manager would calculate the
cost of 10 pounds of onion using the AP method.
-Meaning "edible portion cost"
-The edible portion (EP) method is used to cost an ingredient
after it has been
Trimmed and waste has been removed so that only the
usable portion of the item is reflected.
-Many fruit, vegetable, meat, poultry, and seafood
items lose volume and weight when cooked. This may
EP Cost
be referred to as shrinkage, which is simply the
amount of loss incurred when a product is
trimmed and cooked.
-When breaking down a whole snapper, for instance, weigh the
whole fish and
Calculate the price paid for it whole (the AP cost). Then,
after cleaning, weigh the two fillets. The EP cost of the
two fillets is the price paid for the whole fish, divided by
the final weight of the cleaned and trimmed fillets.
Managers can then use the EP cost when calculating
menu pricing and food cost per serving.
-Original price / trimmed down weight = cost per serving
Shrinkage The amount of loss incurred when a product is trimmed and
cooked
If the AP method is used to determine costs, but the recipe is
Why is it important to know actually written
if you're using the AP or EP Following the EP method, the selling price will be
method? incorrect and the operation will lose money. The same
will be true if the recipe is written using the AP
method and the manager uses the EP method to
determine the ingredient costs.
, -A butcher's yield test is used to measure the amount of
shrinkage that occurs during the trimming of a meat
product. This trimming includes deboning and
How do you convert AP removing fat
quantities into EP And gristle
-A cooking loss test is a way to measure the amount of
quantities?
product shrinkage during the cooking or roasting
process.
-A yield test is used to measure the amount of shrinkage
that occurs during trimming and cutting products that
are not cooked, such as produce. *The amount of
shrinkage due to trimming and cutting is usually
expressed in terms of a percentage.
Example: Consider the yield for tomato slices on a
sandwich or hamburger. A case of tomatoes at 5 × 6
tomatoes (5 layers of 6 tomatoes per layer) has 30
AP to EP Quantities Tomato tomatoes:
Example
5 layers per case x 6 tomatoes per layer = 30 tomatoes per case
30 tomatoes per case x 6 average slices per tomato
= 180 slices per case 180 slices per case x 96% usable
percentage = 173 usable slices per case
-A budget is a plan that indicates an operation's
financial objectives or financial standards.
-The budget also shows how the operation will use its
Budget resources to achieve those objectives in a given
budget cycle.
-The budget also shows the amount of money the
operation will have available to spend.
***Basically, the budget is a plan that tells a manager
how much money should be coming in, and where
and how that manager can spend it.
and Answers
-Accounts payable represents the amount of money
that an operation owes suppliers from which it has
purchased goods, products, or services
-The first step of the accounts payable process begins
when an invoice is brought to the manager's office.
-Next, the manager needs to make sure that the invoice
What is accounts payable?
is addressed to the correct organization.
-The manager needs to make sure that the invoice is
signed by one of the operation's employees, indicating
that item amounts are correct and contents are intact.
-If everything is correct, the manager should stamp the
invoice "Approved," which signifies that it should be
paid. After the invoice is approved it needs to be coded.
That is, if an invoice contains flour and vodka, the flour
should be coded under food costs, and vodka should
be coded under the beverage costs category.
• Pay invoices on a predetermined schedule
established by the business, not the vendors.
The manager should • Make sure all invoices that are paid are accurate and authentic.
oversee accounts payable • Minimize the amount of time and expense in
activities with these goals in processing accounts payable paperwork.
mind:
-Meaning "as purchased cost"
-The as purchased (AP) method is used to cost an
ingredient at the purchase price prior to any trim or
waste being taken into account.
AP Cost -In the AP method, all ingredient quantities are listed
on the standardized recipe in the form in which they
are purchased.
, -"Ten pounds of onion, diced" is an example of AP,
as the recipe is calling for 10 pounds of onion, as
purchased. In this case, the chef would start with 10
pounds of whole onion, peel and dice it, and add the
onion to the recipe. The manager would calculate the
cost of 10 pounds of onion using the AP method.
-Meaning "edible portion cost"
-The edible portion (EP) method is used to cost an ingredient
after it has been
Trimmed and waste has been removed so that only the
usable portion of the item is reflected.
-Many fruit, vegetable, meat, poultry, and seafood
items lose volume and weight when cooked. This may
EP Cost
be referred to as shrinkage, which is simply the
amount of loss incurred when a product is
trimmed and cooked.
-When breaking down a whole snapper, for instance, weigh the
whole fish and
Calculate the price paid for it whole (the AP cost). Then,
after cleaning, weigh the two fillets. The EP cost of the
two fillets is the price paid for the whole fish, divided by
the final weight of the cleaned and trimmed fillets.
Managers can then use the EP cost when calculating
menu pricing and food cost per serving.
-Original price / trimmed down weight = cost per serving
Shrinkage The amount of loss incurred when a product is trimmed and
cooked
If the AP method is used to determine costs, but the recipe is
Why is it important to know actually written
if you're using the AP or EP Following the EP method, the selling price will be
method? incorrect and the operation will lose money. The same
will be true if the recipe is written using the AP
method and the manager uses the EP method to
determine the ingredient costs.
, -A butcher's yield test is used to measure the amount of
shrinkage that occurs during the trimming of a meat
product. This trimming includes deboning and
How do you convert AP removing fat
quantities into EP And gristle
-A cooking loss test is a way to measure the amount of
quantities?
product shrinkage during the cooking or roasting
process.
-A yield test is used to measure the amount of shrinkage
that occurs during trimming and cutting products that
are not cooked, such as produce. *The amount of
shrinkage due to trimming and cutting is usually
expressed in terms of a percentage.
Example: Consider the yield for tomato slices on a
sandwich or hamburger. A case of tomatoes at 5 × 6
tomatoes (5 layers of 6 tomatoes per layer) has 30
AP to EP Quantities Tomato tomatoes:
Example
5 layers per case x 6 tomatoes per layer = 30 tomatoes per case
30 tomatoes per case x 6 average slices per tomato
= 180 slices per case 180 slices per case x 96% usable
percentage = 173 usable slices per case
-A budget is a plan that indicates an operation's
financial objectives or financial standards.
-The budget also shows how the operation will use its
Budget resources to achieve those objectives in a given
budget cycle.
-The budget also shows the amount of money the
operation will have available to spend.
***Basically, the budget is a plan that tells a manager
how much money should be coming in, and where
and how that manager can spend it.
