Exam 9: Analyzing Results Using the Income Statement

What is the formula managers use to calculate a sales variance percentage?

Increases in an operation's revenue should result in an increase in the operation's variable labor cost percentage.

The four sections of the USAR are arranged in order on the income statement from most controllable to least controllable.

Last year an operation had a cost of food consumed for meats of $310,000. In that year the operation had a beginning meat inventory of $15,000 and ending meat inventory of $16,000. What was the operation's inventory turnover for meat last year?

An operation had sales this period of $89,775. Last period sales were $85,500. What was the operation's percentage sales increase for this period when compared to last period?

In what section of a P&L prepared using the USAR are an operation's occupancy costs recorded?

Under what expense category is "Depreciation" listed when a P&L is prepared using the USAR?

What is the financial information that is listed first on a P&L prepared using the USAR?

Last month an operation generated $100,000 in food sales and $40,000 in beverage sales. The operation had a cost of sales for food of $35,000. What was the operation's food cost percentage last month?

An operation's total revenue minus its cost of sales equals the operation's gross profit.

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?

When an operation increases it sales, its cost of variable labor

What is the financial information that is listed last on a P&L prepared using the USAR?

A manager calculates labor cost percentages for both fixed and variable labor costs. If there are no staff pay raises, and the manager's sales increase by five percent, the fixed labor cost percentage should

Prime costs in a restaurant include its food, beverage and labor costs.

The two expenses that are included in the Prime Costs section of a P&L prepared using the USAR are food and

When using the USAR, occupancy costs in a food service operation are recorded as a Controllable other expense.

An operation's return on sales (ROS) is also referred to as its profit margin.

In the last quarter an operation had management labor costs of $20,000, staff labor costs of $80,000 and employee benefits costs of $30,000. The operation achieved a 25 percent total labor cost in the last quarter. How much revenue did the operation generate in the last quarter?

Last month a manager's operation achieved $60,000 in food sales and $40,000 in beverage sales. The manager'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?