food and beverage cost control final
exam questions with correct answers
which item is listed in first on a P&L prepared using the USAR? - Answer-sales
which item is listed last on a P&L prepared using the USAR? - Answer-profits
Last month a manager's operation achieved $60,000 in food sales and $40,000 in
beverage sales. The manger's cost of sales for food was $15,000 and cost of sales for
beverages was $8,000. What was the manager's cost of sales percentage for food last
month? - Answer-25%
What is the formula managers use to calculate a sales variance percentage? - Answer-
(This period sales - Last period sales) ÷ Last period sales = Sales variance %
A manager's operation had sales this period of $89,775. Last period sales were
$85,500. What was the manager's percentage sales increase for this period when
compared to last period? - Answer-5.0%
A manager had beginning beverage inventory of $15,000 for an accounting period and
an ending beverage inventory of $19,000 for the period. What was the manager's
average beverage inventory value for the period? - Answer-$17,000
Last year a manager had a cost of food consumed for meats of $310,000. Last year the
manager had beginning meat inventory of $15,000 and ending meat inventory of
$16,000. What was the manager's inventory turnover for meat last year? - Answer-20
9. What are the effects on fixed labor cost and fixed labor cost percentage when an
operation's sales increase? - Answer-Cost of fixed labor is unchanged and fixed labor
cost percentage decreases
What is the formula managers use to calculate their percentage variance when
comparing last year's profits to this year's profits? - Answer-(Profits This Year (−) Profits
Last Year) (÷) Profits Last Year = Percentage Variance
Last year an operation had sales of $800,000 and generated a Net income of $88,000.
What was the operation's profit margin last year? - Answer-11%
The primary purpose of Cost/Volume/Profit (CVP) analysis is to - Answer-identify the
amount of sales revenue needed to avoid an operating loss.
How many different menu item classifications will result if managers evaluate their menu
items' popularity and food cost percentage by using a two factor matrix analysis? -
Answer-4
, Which type of menu item should be removed from the menu if a manager uses matrix
analysis to evaluate a menu based on item popularity and contribution margin? -
Answer-An item with low contribution margin and low popularity
A manager utilizes contribution margin matrix analysis to evaluate her menu. What
would be a good marketing strategy to use on an item she determines is very popular
but has a low contribution margin? - Answer-Reduce the item's prominence on the
menu
A menu item sells for $8.00, has a food cost of 25%, and is sold to 100 guests. What is
the item's total contribution margin? - Answer-$600
A loss leader is a menu item that is priced very low, and sometimes even below its total
cost, for the purpose of - Answer-increasing total revenue.
When an operation reaches its break-even point the operation's revenue will equal its -
Answer-fixed plus variable expenses.
What is the formula managers use to calculate their break-even point in sales? -
Answer-Fixed Costs (÷) Contribution Margin % = Break-Even Point in Sales
A restaurant has a check average of $12 and has variable costs per cover of $4.80. If its
fixed costs are $36,000 each month, what is the number of covers that must be sold to
reach its monthly break-even point? - Answer-5000
Last year the manager of a health care facility served 36,500 dinners. The manager
estimates an increase of 5% in the number of dinners to be served next year. How
many dinners should the manager estimate will be served next year? - Answer-38,325
Last year a manager's operation achieved a 28% labor cost on sales of $1,500,000. For
next year, the manager anticipates an 8% increase in the prices he will pay for labor.
The manager will also increase her menu prices by 5%. What should be the manager's
best estimate for next year's labor cost percentage? - Answer-28.8%
A manager budgeted $6,000 for kitchen equipment repairs this year. The manager
currently has spent $1,830 on these repairs. What percentage of the kitchen equipment
repair budget has now been spent by the manager? - Answer-30.5%
Cost of Sales is the first numerical entry on a P&L prepared using the USAR. - Answer-
false
Prime costs in a restaurant include its food, beverage and labor costs. - Answer-true
An operation's total revenue minus its cost of sales equals the operation's gross profit. -
Answer-true
exam questions with correct answers
which item is listed in first on a P&L prepared using the USAR? - Answer-sales
which item is listed last on a P&L prepared using the USAR? - Answer-profits
Last month a manager's operation achieved $60,000 in food sales and $40,000 in
beverage sales. The manger's cost of sales for food was $15,000 and cost of sales for
beverages was $8,000. What was the manager's cost of sales percentage for food last
month? - Answer-25%
What is the formula managers use to calculate a sales variance percentage? - Answer-
(This period sales - Last period sales) ÷ Last period sales = Sales variance %
A manager's operation had sales this period of $89,775. Last period sales were
$85,500. What was the manager's percentage sales increase for this period when
compared to last period? - Answer-5.0%
A manager had beginning beverage inventory of $15,000 for an accounting period and
an ending beverage inventory of $19,000 for the period. What was the manager's
average beverage inventory value for the period? - Answer-$17,000
Last year a manager had a cost of food consumed for meats of $310,000. Last year the
manager had beginning meat inventory of $15,000 and ending meat inventory of
$16,000. What was the manager's inventory turnover for meat last year? - Answer-20
9. What are the effects on fixed labor cost and fixed labor cost percentage when an
operation's sales increase? - Answer-Cost of fixed labor is unchanged and fixed labor
cost percentage decreases
What is the formula managers use to calculate their percentage variance when
comparing last year's profits to this year's profits? - Answer-(Profits This Year (−) Profits
Last Year) (÷) Profits Last Year = Percentage Variance
Last year an operation had sales of $800,000 and generated a Net income of $88,000.
What was the operation's profit margin last year? - Answer-11%
The primary purpose of Cost/Volume/Profit (CVP) analysis is to - Answer-identify the
amount of sales revenue needed to avoid an operating loss.
How many different menu item classifications will result if managers evaluate their menu
items' popularity and food cost percentage by using a two factor matrix analysis? -
Answer-4
, Which type of menu item should be removed from the menu if a manager uses matrix
analysis to evaluate a menu based on item popularity and contribution margin? -
Answer-An item with low contribution margin and low popularity
A manager utilizes contribution margin matrix analysis to evaluate her menu. What
would be a good marketing strategy to use on an item she determines is very popular
but has a low contribution margin? - Answer-Reduce the item's prominence on the
menu
A menu item sells for $8.00, has a food cost of 25%, and is sold to 100 guests. What is
the item's total contribution margin? - Answer-$600
A loss leader is a menu item that is priced very low, and sometimes even below its total
cost, for the purpose of - Answer-increasing total revenue.
When an operation reaches its break-even point the operation's revenue will equal its -
Answer-fixed plus variable expenses.
What is the formula managers use to calculate their break-even point in sales? -
Answer-Fixed Costs (÷) Contribution Margin % = Break-Even Point in Sales
A restaurant has a check average of $12 and has variable costs per cover of $4.80. If its
fixed costs are $36,000 each month, what is the number of covers that must be sold to
reach its monthly break-even point? - Answer-5000
Last year the manager of a health care facility served 36,500 dinners. The manager
estimates an increase of 5% in the number of dinners to be served next year. How
many dinners should the manager estimate will be served next year? - Answer-38,325
Last year a manager's operation achieved a 28% labor cost on sales of $1,500,000. For
next year, the manager anticipates an 8% increase in the prices he will pay for labor.
The manager will also increase her menu prices by 5%. What should be the manager's
best estimate for next year's labor cost percentage? - Answer-28.8%
A manager budgeted $6,000 for kitchen equipment repairs this year. The manager
currently has spent $1,830 on these repairs. What percentage of the kitchen equipment
repair budget has now been spent by the manager? - Answer-30.5%
Cost of Sales is the first numerical entry on a P&L prepared using the USAR. - Answer-
false
Prime costs in a restaurant include its food, beverage and labor costs. - Answer-true
An operation's total revenue minus its cost of sales equals the operation's gross profit. -
Answer-true
