Question 1

What is inventory target?

Accepted Answer

Inventory target is the quantities of stock that the purchaser deems necessary to have on hand.

Question 2

Legal and ethical issues are rarely relevant in purchasing decisions.

Accepted Answer

A) True 
 B)False  False

Question 3

Competent purchasing and effective cost control give you your best opportunity to increase profits.

Accepted Answer

A) True 
 B)False  True

Question 4

Can a minor enter into a legally binding contract?

Accepted Answer

Parties signing a contract mus

Question 5

What is the primary goal of the purchasing department?

Accepted Answer

A)  Controlling costs and maximizing value 
B)  Controlling product usage 
C)  Keeping the products locked up and safe from damage 
D)  Maintaining a proper inventory at all times 
A)  Controlling costs and maximizing value 
B)  Controlling product usage 
C)  Keeping the products locked up and safe from damage 
D)  Maintaining a proper inventory at all times

Question 6

Using the Internet to find products is helpful, but checking a vendor's reputation can be even more important when you find that vendor online. Why?

Accepted Answer

Unethical vendors have a new way to reac

Question 7

Reducing expenses on labor and overhead is generally much easier and more effective than controlling purchasing costs.

Accepted Answer

A) True 
 B)False

Question 8

The purchasing agent has only a minimal impact on a restaurant's financial success.

Accepted Answer

A) True 
 B)False

Question 9

Define purchase specification.

Accepted Answer

Purchase specifications are de

Question 10

Purchasing is an entire process that includes several steps. Which of the following is not one of those steps?

Accepted Answer

A)  Planning the menu and determining the items needed for that menu 
B)  Determining the product specifications for those items 
C)  Selecting vendors and purchasing the items 
D)  Advertising the menu to potential customers 
A)  Planning the menu and determining the items needed for that menu 
B)  Determining the product specifications for those items 
C)  Selecting vendors and purchasing the items 
D)  Advertising the menu to potential customers

Question 11

Why has technology increased productivity for purchasers?

Accepted Answer

A)  You have access to an almost infinite database of products 
B)  Online ordering eliminates the distance effect 
C)  Purchasing databases maintain crucial inventory information 
D)  All answers are correct 
A)  You have access to an almost infinite database of products 
B)  Online ordering eliminates the distance effect 
C)  Purchasing databases maintain crucial inventory information 
D)  All answers are correct

Question 12

When you see unethical behavior in your company, what must you do?

Accepted Answer

If you realize that someone in

Question 13

The purchaser has a little role in creating or upholding a company's ethical standards.

Accepted Answer

A) True 
 B)False

Question 14

Why is it the responsibility of the purchaser to review vendor bids before making appropriate purchasing decisions?

Accepted Answer

For pricing, availab

Question 15

Vendors often provide services beyond just the product. Which of the following is not something you should look for in your vendors?

Accepted Answer

A)  Convenient delivery schedules 
B)  Free samples for your family to test 
C)  Reliably sending you the items you request 
D)  Consistency in the quality of the products 
A)  Convenient delivery schedules 
B)  Free samples for your family to test 
C)  Reliably sending you the items you request 
D)  Consistency in the quality of the products

Question 16

Communication between the chef and the purchaser should happen only when the chef explains his or her product needs and the purchaser procures them.

Accepted Answer

A) True 
 B)False

Question 17

Why is it more important to control purchasing expenses than to increase sales an equal amount?

Accepted Answer

A)  Because the purchaser will get bonuses for saving company funds 
B)  Because the budget is increased by whatever amount is successfully controlled 
C)  Because all savings through cost control go directly to increase the company's bottom line 
D)  Controlling purchasing expenses is not really more critical than increasing sales 
A)  Because the purchaser will get bonuses for saving company funds 
B)  Because the budget is increased by whatever amount is successfully controlled 
C)  Because all savings through cost control go directly to increase the company's bottom line 
D)  Controlling purchasing expenses is not really more critical than increasing sales

Question 18

A contract is a written and signed agreement between two or more parties that is enforceable by law.

Accepted Answer

A) True 
 B)False

Question 19

Receiving and processing invoices electronically does what for a company?

Accepted Answer

A)  Eliminates the need for employees 
B)  Eliminates the need for paper copies of the paperwork 
C)  Decreases the need for review of the data in the invoice 
D)  Increases the need for technologically adept staff members 
A)  Eliminates the need for employees 
B)  Eliminates the need for paper copies of the paperwork 
C)  Decreases the need for review of the data in the invoice 
D)  Increases the need for technologically adept staff members

Question 20

Saving $2,000 on purchases in an operation that averages a 4 percent profit margin is equivalent to increasing sales by how much?

Accepted Answer

A)  $8,000 
B)  $10,000 
C)  $2,000 
D)  $20,000 
A)  $8,000 
B)  $10,000 
C)  $2,000 
D)  $20,000

What is inventory target?

Legal and ethical issues are rarely relevant in purchasing decisions.

Competent purchasing and effective cost control give you your best opportunity to increase profits.

Can a minor enter into a legally binding contract?

What is the primary goal of the purchasing department?

Using the Internet to find products is helpful, but checking a vendor's reputation can be even more important when you find that vendor online. Why?

Reducing expenses on labor and overhead is generally much easier and more effective than controlling purchasing costs.

The purchasing agent has only a minimal impact on a restaurant's financial success.

Define purchase specification.

Purchasing is an entire process that includes several steps. Which of the following is not one of those steps?

Why has technology increased productivity for purchasers?

When you see unethical behavior in your company, what must you do?

The purchaser has a little role in creating or upholding a company's ethical standards.

Why is it the responsibility of the purchaser to review vendor bids before making appropriate purchasing decisions?

Vendors often provide services beyond just the product. Which of the following is not something you should look for in your vendors?

Communication between the chef and the purchaser should happen only when the chef explains his or her product needs and the purchaser procures them.

Why is it more important to control purchasing expenses than to increase sales an equal amount?

A contract is a written and signed agreement between two or more parties that is enforceable by law.

Receiving and processing invoices electronically does what for a company?

Saving $2,000 on purchases in an operation that averages a 4 percent profit margin is equivalent to increasing sales by how much?

Overview of the Industry and the Managers Role

Menu Development

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

Monthly Physical Inventory and Monthly Food Cost Calculations

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 3: Introduction to Purchasing

What is inventory target?

Legal and ethical issues are rarely relevant in purchasing decisions.

Competent purchasing and effective cost control give you your best opportunity to increase profits.

Can a minor enter into a legally binding contract?

What is the primary goal of the purchasing department?

Using the Internet to find products is helpful, but checking a vendor's reputation can be even more important when you find that vendor online. Why?

Reducing expenses on labor and overhead is generally much easier and more effective than controlling purchasing costs.

The purchasing agent has only a minimal impact on a restaurant's financial success.

Define purchase specification.

Purchasing is an entire process that includes several steps. Which of the following is not one of those steps?

Why has technology increased productivity for purchasers?

When you see unethical behavior in your company, what must you do?

The purchaser has a little role in creating or upholding a company's ethical standards.

Why is it the responsibility of the purchaser to review vendor bids before making appropriate purchasing decisions?

Vendors often provide services beyond just the product. Which of the following is not something you should look for in your vendors?

Communication between the chef and the purchaser should happen only when the chef explains his or her product needs and the purchaser procures them.

Why is it more important to control purchasing expenses than to increase sales an equal amount?

A contract is a written and signed agreement between two or more parties that is enforceable by law.

Receiving and processing invoices electronically does what for a company?

Saving $2,000 on purchases in an operation that averages a 4 percent profit margin is equivalent to increasing sales by how much?

Overview of the Industry and the Managers Role

Menu Development

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

Monthly Physical Inventory and Monthly Food Cost Calculations

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