AHLEI CHAPTER 2
COMPLETE QUESTION SET WITH VERIFIED
SOLUTIONS GRADED A+
Question 1.
Reducing the cost for the purchasing function
ANSWER
o Negotiate prices
o Review quality standards
o Evaluate the need to purchase convenience products.
o Discontinue unnecessary supplier services.
o Combine orders
o Purchase in larger quantities
o Pay cash
o Change purchase unit-size.
o Consider cooperative purchasing
o Consider promotional discounts
Question 2.
Reference checks
ANSWER
may help verify information provided on the application form.
o Telephone conversations with past employers are a good start.
o Increasingly, former employees are reluctant to provide information because of concern over
lawsuits.
o Employers should receive the formal approval of the applicant before conducting a reference
check.
, Question 3.
Inventory turnover rate
ANSWER
shows the number of times in a given period that inventory is converted or turned into
revenue.
o Measures the rate at which inventory is turned into food and beverage costs required to
generate food and beverage revenue.
Question 4.
LIFO
ANSWER
the costs of the products most recently added to inventory are the costs assigned when
products are issued.
Question 5.
Bottle marking
ANSWER
identifies a bottle of liquor or wine as house property, and it may also note information about
the bottle's cost and date of issue.
Question 6.
Chapter 12
ANSWER
Question 7.
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.
COMPLETE QUESTION SET WITH VERIFIED
SOLUTIONS GRADED A+
Question 1.
Reducing the cost for the purchasing function
ANSWER
o Negotiate prices
o Review quality standards
o Evaluate the need to purchase convenience products.
o Discontinue unnecessary supplier services.
o Combine orders
o Purchase in larger quantities
o Pay cash
o Change purchase unit-size.
o Consider cooperative purchasing
o Consider promotional discounts
Question 2.
Reference checks
ANSWER
may help verify information provided on the application form.
o Telephone conversations with past employers are a good start.
o Increasingly, former employees are reluctant to provide information because of concern over
lawsuits.
o Employers should receive the formal approval of the applicant before conducting a reference
check.
, Question 3.
Inventory turnover rate
ANSWER
shows the number of times in a given period that inventory is converted or turned into
revenue.
o Measures the rate at which inventory is turned into food and beverage costs required to
generate food and beverage revenue.
Question 4.
LIFO
ANSWER
the costs of the products most recently added to inventory are the costs assigned when
products are issued.
Question 5.
Bottle marking
ANSWER
identifies a bottle of liquor or wine as house property, and it may also note information about
the bottle's cost and date of issue.
Question 6.
Chapter 12
ANSWER
Question 7.
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.
