Question 1

Food turnover ratios are typically higher than beverage turnover ratios.

Accepted Answer

A) True 
 B)False  True

Question 2

What is the LIFO method? What are its advantages and disadvantages?

Accepted Answer

The LIFO method places an inventory value on items based on Last In, First Out. Assuming proper rotation, it is the opposite as the actual cost method. However, during periods of significant inflation, it will result in deflating profits by indicating a lower inventory valuation. This results in payment of lower taxes and in some cases bonuses-an advantage or disadvantage based on your perspective. If addition capital is being sought from outside investors, for instance, higher "profits" would probably be advantageous.

Question 3

In an accrual accounting system, if you purchase and receive $50 worth of chicken on January 31, but will not be billed for the chicken until February 6, and the chicken remains in inventory until used on February 2, what date is the expense for the chicken actually accrued?

Accepted Answer

A)  January 31 
B)  February 6 
C)  February 2 
D)  none of these answers is correct 
A)  January 31 
B)  February 6 
C)  February 2 
D)  none of these answers is correct C

Question 4

Inventory value is recorded as a liability in the company financial balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

It is not the responsibility of the manager to maintain storeroom inventory turnover within the company's guidelines to minimize product deterioration, interest on borrowed funds, and the impact on cash flow or other company obligations.

Accepted Answer

A) True 
 B)False

Question 6

Sales of food or beverage products to employees at cost are called steward sales.

Accepted Answer

A) True 
 B)False

Question 7

What is a perpetual inventory?

Accepted Answer

A perpetual inventor

Question 8

If food sales for the month were $75,000, what is the turnover ratio assuming the following data?
Beginning inventory = $3,250
Purchases = $23,560
Transfers out = $450
Transfers in = $600
Ending inventory = $4,218

Accepted Answer

21,832/((3

Question 9

Because no revenue is generated, which of the following should not be recorded?

Accepted Answer

A)  spending on the staff 
B)  promotional or entertainment expenses 
C)  employee meals 
D)  "spending on the staff," "promotional or entertainment expenses," and "employee meals" should all be recorded 
A)  spending on the staff 
B)  promotional or entertainment expenses 
C)  employee meals 
D)  "spending on the staff," "promotional or entertainment expenses," and "employee meals" should all be recorded

Question 10

Ethical standards provide sound, practical advice for managers. Most of the rules in the ethical standards are motivated by a very practical consideration: if these rules were not followed in business, then the economy and all of us suffer.

Accepted Answer

A) True 
 B)False

Question 11

Calculate the cost of food consumed assuming the following: Beginning inventory $05,890
Net purchases $22,500
Transfers in $0,0870
Transfers out $0,0490
Ending inventory $05,010

Accepted Answer

A)  $23,760 
B)  $24,250 
C)  $29,260 
D)  $23,380 
A)  $23,760 
B)  $24,250 
C)  $29,260 
D)  $23,380

Question 12

How should the inventory sheets be arranged?

Accepted Answer

To facilitate taking the physi

Question 13

The beginning inventory for February 2009 is not equal to the ending inventory for January 2009.

Accepted Answer

A) True 
 B)False

Question 14

You can determine the value of your inventory by either physical inventory or perpetual inventory.

Accepted Answer

A) True 
 B)False

Question 15

How is the beginning inventory for a period calculated?

Accepted Answer

The beginning inventory (excep

Question 16

Calculate the cost of food consumed assuming the following: Beginning inventory $05,890
Net purchases $22,500
Transfers in $0,0870
Transfers out $0,0490
Ending inventory $05,010
Employee meals $0,0870
Promotional food cost $0,0440

Accepted Answer

A)  $22,890 
B)  $22,450 
C)  $23,380 
D)  $27,950 
A)  $22,890 
B)  $22,450 
C)  $23,380 
D)  $27,950

Question 17

On what items is a perpetual inventory most important?

Accepted Answer

A perpetual inventor

Question 18

Determine the total value of the inventory based on the average price method. Count Price Extensions
Beginning inventory 6 $5.65 $33.90
Purchases on 2/6 before inventory 6 $6.30 $37.80
Purchases on 2/13 before inventory 12 $6.10 $73.20
Purchases on 2/20 before inventory 6 $6.30 $37.80
Purchases on 2/27 before inventory 4 $5.80 $23.20
Ending inventory 12 units

Accepted Answer

A)  $69.60 
B)  $73.20 
C)  $71.90 
D)  $72.67 
A)  $69.60 
B)  $73.20 
C)  $71.90 
D)  $72.67

Question 19

Why is it important to include transfers in calculating the cost of food sold?

Accepted Answer

Though many operations consider transfer

Question 20

Establishing a perpetual inventory eliminates the need to take physical inventory.

Accepted Answer

A) True 
 B)False

Food turnover ratios are typically higher than beverage turnover ratios.

What is the LIFO method? What are its advantages and disadvantages?

In an accrual accounting system, if you purchase and receive $50 worth of chicken on January 31, but will not be billed for the chicken until February 6, and the chicken remains in inventory until used on February 2, what date is the expense for the chicken actually accrued?

Inventory value is recorded as a liability in the company financial balance sheet.

It is not the responsibility of the manager to maintain storeroom inventory turnover within the company's guidelines to minimize product deterioration, interest on borrowed funds, and the impact on cash flow or other company obligations.

Sales of food or beverage products to employees at cost are called steward sales.

What is a perpetual inventory?

If food sales for the month were $75,000, what is the turnover ratio assuming the following data? Beginning inventory = $3,250 Purchases = $23,560 Transfers out = $450 Transfers in = $600 Ending inventory = $4,218

Because no revenue is generated, which of the following should not be recorded?

Ethical standards provide sound, practical advice for managers. Most of the rules in the ethical standards are motivated by a very practical consideration: if these rules were not followed in business, then the economy and all of us suffer.

Calculate the cost of food consumed assuming the following: Beginning inventory $05,890 Net purchases $22,500 Transfers in $0,0870 Transfers out $0,0490 Ending inventory $05,010

How should the inventory sheets be arranged?

The beginning inventory for February 2009 is not equal to the ending inventory for January 2009.

You can determine the value of your inventory by either physical inventory or perpetual inventory.

How is the beginning inventory for a period calculated?

Calculate the cost of food consumed assuming the following: Beginning inventory $05,890 Net purchases $22,500 Transfers in $0,0870 Transfers out $0,0490 Ending inventory $05,010 Employee meals $0,0870 Promotional food cost $0,0440

On what items is a perpetual inventory most important?

Why is it important to include transfers in calculating the cost of food sold?

Establishing a perpetual inventory eliminates the need to take physical inventory.

Overview of the Industry and the Managers Role

Menu Development

Introduction to Purchasing

Purchase Specifications

Price and the Vendor

Purchasing Controls

Introduction to Beverages

Beverage Procedures, From Start to Finish

Beverage Controls and Service Procedures

Planning for Food Profit and Controls

Revenue and Cash Handling Control

Menu Analysis and Planning for Sales

Staff Planning and Labor Cost Control

Analyzing Cost-Volume-Profit Cvp Relationships and Marginal Contribution Break-Even MCB

Budgeting and Manager ROI

Filters

Exam 11: Monthly Physical Inventory and Monthly Food Cost Calculations

Food turnover ratios are typically higher than beverage turnover ratios.

What is the LIFO method? What are its advantages and disadvantages?

In an accrual accounting system, if you purchase and receive $50 worth of chicken on January 31, but will not be billed for the chicken until February 6, and the chicken remains in inventory until used on February 2, what date is the expense for the chicken actually accrued?

Inventory value is recorded as a liability in the company financial balance sheet.

It is not the responsibility of the manager to maintain storeroom inventory turnover within the company's guidelines to minimize product deterioration, interest on borrowed funds, and the impact on cash flow or other company obligations.

Sales of food or beverage products to employees at cost are called steward sales.

What is a perpetual inventory?

If food sales for the month were $75,000, what is the turnover ratio assuming the following data? Beginning inventory = $3,250 Purchases = $23,560 Transfers out = $450 Transfers in = $600 Ending inventory = $4,218

Because no revenue is generated, which of the following should not be recorded?

Ethical standards provide sound, practical advice for managers. Most of the rules in the ethical standards are motivated by a very practical consideration: if these rules were not followed in business, then the economy and all of us suffer.

Calculate the cost of food consumed assuming the following: Beginning inventory $05,890 Net purchases $22,500 Transfers in $0,0870 Transfers out $0,0490 Ending inventory $05,010

How should the inventory sheets be arranged?

The beginning inventory for February 2009 is not equal to the ending inventory for January 2009.

You can determine the value of your inventory by either physical inventory or perpetual inventory.

How is the beginning inventory for a period calculated?

Calculate the cost of food consumed assuming the following: Beginning inventory $05,890 Net purchases $22,500 Transfers in $0,0870 Transfers out $0,0490 Ending inventory $05,010 Employee meals $0,0870 Promotional food cost $0,0440

On what items is a perpetual inventory most important?

Why is it important to include transfers in calculating the cost of food sold?

Establishing a perpetual inventory eliminates the need to take physical inventory.

Overview of the Industry and the Managers Role

Menu Development

Introduction to Purchasing

Purchase Specifications

Price and the Vendor

Purchasing Controls

Introduction to Beverages

Beverage Procedures, From Start to Finish

Beverage Controls and Service Procedures

Planning for Food Profit and Controls

Revenue and Cash Handling Control

Menu Analysis and Planning for Sales

Staff Planning and Labor Cost Control

Analyzing Cost-Volume-Profit Cvp Relationships and Marginal Contribution Break-Even MCB

Budgeting and Manager ROI

Filters