AHLEI CHAPTER 2 TESTED QUESTIONS
AND COMPLETE SOLUTIONS
◉ Chapter 4
Answer:
◉ Operating budget
Answer: a plan that estimates how much revenue will be
generated and what expenses will be incurred to meet financial
requirements and goals.
o Short-term is most useful for a food and beverage services
establishment.
o Becomes part of the control process.
◉ Top-down budgeting
Answer: budgets are developed at the corporate level and passed
down to lower organization levels.
o An advantage is putting the profit requirements in the hands of
the corporate leaders.
◉ Calculating projected revenues
Answer: o Forecasts are usually made separate for food and
alcoholic revenues.
o Helps managers pinpoint operating problems during the budget
period.
,o Determined by multiplying the anticipated number of guests by
the amount of the average check.
◉ Estimating beverage expense
Answer: o Beverage cost = % of beverage revenue x total beverage
revenue
◉ Variance
Answer: o Revenue variance = actual - budget
o Expense variance = budget - actual
◉ Mixed costs
Answer: costs that contain both fixed and variable cost elements.
◉ Cost-volume profit analysis (CVP)
Answer: can be used to determine the revenues required to
generate any desired profit level.
o Reviews the relationships between costs, revenue, and profits.
◉ Chapter 5
Answer:
◉ Standard recipes
Answer: formula for producing a food or beverage item.
, o Provides the summary of ingredients, the required quantity of
each, specific preparation procedures, portion size and portioning
equipment, garnish, and any other information needed to prepare
the item.
o Advantage: Regardless of who prepares the item or when it is
prepared, the product will always look, cost, and taste the same.
◉ Portion cost
Answer: the cost of preparing and serving one portion of food or
one drink item according to the standard recipe.
o = Total ingredient cost / number of portions
◉ Production loss
Answer: the difference between the AP weight and the EP weight.
◉ Purchase specifications
Answer: a concise description of the quality, size, weight, count,
and other factors needed to describe a desired item.
o Should be established based on menu requirements and
standard recipe needs.
o Advantages:
◉ Fewer products may be required.
Answer:
AND COMPLETE SOLUTIONS
◉ Chapter 4
Answer:
◉ Operating budget
Answer: a plan that estimates how much revenue will be
generated and what expenses will be incurred to meet financial
requirements and goals.
o Short-term is most useful for a food and beverage services
establishment.
o Becomes part of the control process.
◉ Top-down budgeting
Answer: budgets are developed at the corporate level and passed
down to lower organization levels.
o An advantage is putting the profit requirements in the hands of
the corporate leaders.
◉ Calculating projected revenues
Answer: o Forecasts are usually made separate for food and
alcoholic revenues.
o Helps managers pinpoint operating problems during the budget
period.
,o Determined by multiplying the anticipated number of guests by
the amount of the average check.
◉ Estimating beverage expense
Answer: o Beverage cost = % of beverage revenue x total beverage
revenue
◉ Variance
Answer: o Revenue variance = actual - budget
o Expense variance = budget - actual
◉ Mixed costs
Answer: costs that contain both fixed and variable cost elements.
◉ Cost-volume profit analysis (CVP)
Answer: can be used to determine the revenues required to
generate any desired profit level.
o Reviews the relationships between costs, revenue, and profits.
◉ Chapter 5
Answer:
◉ Standard recipes
Answer: formula for producing a food or beverage item.
, o Provides the summary of ingredients, the required quantity of
each, specific preparation procedures, portion size and portioning
equipment, garnish, and any other information needed to prepare
the item.
o Advantage: Regardless of who prepares the item or when it is
prepared, the product will always look, cost, and taste the same.
◉ Portion cost
Answer: the cost of preparing and serving one portion of food or
one drink item according to the standard recipe.
o = Total ingredient cost / number of portions
◉ Production loss
Answer: the difference between the AP weight and the EP weight.
◉ Purchase specifications
Answer: a concise description of the quality, size, weight, count,
and other factors needed to describe a desired item.
o Should be established based on menu requirements and
standard recipe needs.
o Advantages:
◉ Fewer products may be required.
Answer:
