Question 1

High beverage inventory turnover rates accompanied by frequent product outages may indicate beverage inventory levels are too small.

Accepted Answer

A) True 
 B)False

Question 2

What is the name of the activity that describes the recording and summarizing of a business's financial data?

Accepted Answer

A)  Analysis 
B)  Bookkeeping 
C)  Cost accounting 
D)  Managerial accounting 
A)  Analysis 
B)  Bookkeeping 
C)  Cost accounting 
D)  Managerial accounting

Question 3

What is the primary purpose of a uniform system of accounts?

Accepted Answer

A)  To record business revenue 
B)  To minimize business expenses 
C)  To ensure a business pays all of its applicable taxes 
D)  To present financial data usefully and consistently 
A)  To record business revenue 
B)  To minimize business expenses 
C)  To ensure a business pays all of its applicable taxes 
D)  To present financial data usefully and consistently

Question 4

"Total sales - Total cost of sales" is the formula a manager uses to calculate an operation's

Accepted Answer

A)  prime cost. 
B)  gross profit. 
C)  profit margin. 
D)  cost of sales percentage. 
A)  prime cost. 
B)  gross profit. 
C)  profit margin. 
D)  cost of sales percentage.

Question 5

Managerial accounting is the process used to document and analyze the sales, expenses, and profits of a business.

Accepted Answer

A) True 
 B)False

Question 6

What is the formula managers use to calculate a percentage variance when comparing last year's profits to this year's profits?

Accepted Answer

A)  (Profits This Year − Profits Last Year) ÷ Profits Last Year = % Variance 
B)  (Profits Last Year − Profits This Year) ÷ Profits This Year = % Variance 
C)  (Profits This Year − Profits Last Year) x Profits Last Year = % Variance 
D)  (Profits Last Year − Profits This Year) x Profits This Year = % Variance 
A)  (Profits This Year − Profits Last Year) ÷ Profits Last Year = % Variance 
B)  (Profits Last Year − Profits This Year) ÷ Profits This Year = % Variance 
C)  (Profits This Year − Profits Last Year) x Profits Last Year = % Variance 
D)  (Profits Last Year − Profits This Year) x Profits This Year = % Variance

Question 7

What is a cost that would be classified as a controllable other expense if a manager created a P&L using the USAR format?

Accepted Answer

A)  Leases 
B)  Utilities 
C)  Debt repayments 
D)  Mortgage payments 
A)  Leases 
B)  Utilities 
C)  Debt repayments 
D)  Mortgage payments

Question 8

A Uniform Systems of Accounts describes the legally required format managers must use when preparing the financial statements of a business.

Accepted Answer

A) True 
 B)False

Question 9

An operation had a beginning beverage inventory of $15,000 for an accounting period and an ending beverage inventory of $19,000 for the period. What was the operation's average beverage inventory value for the period?

Accepted Answer

A)  $16,000 
B)  $16,500 
C)  $17,000 
D)  $17,500 
A)  $16,000 
B)  $16,500 
C)  $17,000 
D)  $17,500

Question 10

What is the formula foodservice managers use to calculate a profit margin?

Accepted Answer

A)  Total sales ÷ Net income = Profit margin 
B)  Prime cost ÷ Net income = Profit margin 
C)  Net income ÷ Total sales = Profit margin 
D)  Prime costs ÷ Total sales = Profit margin 
A)  Total sales ÷ Net income = Profit margin 
B)  Prime cost ÷ Net income = Profit margin 
C)  Net income ÷ Total sales = Profit margin 
D)  Prime costs ÷ Total sales = Profit margin

Question 11

Cost of Sales is the first numerical entry on a P&L prepared using the USAR.

Accepted Answer

A) True 
 B)False

Question 12

Last month an operation generated $200,000 in food sales and $50,000 in beverage sales. The operation had a cost of sales for beverages of $10,000. What was the operation's beverage cost percentage last month?

Accepted Answer

A)  2% 
B)  4% 
C)  20% 
D)  40% 
A)  2% 
B)  4% 
C)  20% 
D)  40%

Question 13

For what food category should inventory turnover in a food service operation be highest?

Accepted Answer

A)  Dried foods 
B)  Baked goods 
C)  Frozen foods 
D)  Canned goods 
A)  Dried foods 
B)  Baked goods 
C)  Frozen foods 
D)  Canned goods

Question 14

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

Accepted Answer

A)  increases and its fixed labor cost percentage increases. 
B)  increases and its fixed labor cost percentage decreases. 
C)  is unchanged and its and fixed labor cost percentage increases. 
D)  is unchanged and its fixed labor cost percentage decreases. 
A)  increases and its fixed labor cost percentage increases. 
B)  increases and its fixed labor cost percentage decreases. 
C)  is unchanged and its and fixed labor cost percentage increases. 
D)  is unchanged and its fixed labor cost percentage decreases.

Question 15

In the last accounting period, an operation achieved total sales of $120,000. The operation's manager then budgeted a 4.5 percent sales increase for the next accounting period. What will be the manager's budgeted sales amount for the next accounting period?

Accepted Answer

A)  $124,800 
B)  $125,400 
C)  $126,000 
D)  $126,600 
A)  $124,800 
B)  $125,400 
C)  $126,000 
D)  $126,600

High beverage inventory turnover rates accompanied by frequent product outages may indicate beverage inventory levels are too small.

What is the name of the activity that describes the recording and summarizing of a business's financial data?

What is the primary purpose of a uniform system of accounts?

"Total sales - Total cost of sales" is the formula a manager uses to calculate an operation's

Managerial accounting is the process used to document and analyze the sales, expenses, and profits of a business.

What is the formula managers use to calculate a percentage variance when comparing last year's profits to this year's profits?

What is a cost that would be classified as a controllable other expense if a manager created a P&L using the USAR format?

A Uniform Systems of Accounts describes the legally required format managers must use when preparing the financial statements of a business.

An operation had a beginning beverage inventory of $15,000 for an accounting period and an ending beverage inventory of $19,000 for the period. What was the operation's average beverage inventory value for the period?

What is the formula foodservice managers use to calculate a profit margin?

Cost of Sales is the first numerical entry on a P&L prepared using the USAR.

Last month an operation generated $200,000 in food sales and $50,000 in beverage sales. The operation had a cost of sales for beverages of $10,000. What was the operation's beverage cost percentage last month?

For what food category should inventory turnover in a food service operation be highest?

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

In the last accounting period, an operation achieved total sales of $120,000. The operation's manager then budgeted a 4.5 percent sales increase for the next accounting period. What will be the manager's budgeted sales amount for the next accounting period?

Managing Revenue and Expense

Creating Sales Forecasts

Purchasing and Receiving

Managing Inventory and Production

Monitoring Food and Beverage Product Costs

Managing Food and Beverage Pricing

Managing the Cost of Labor

Controlling Other Expenses

Planning for Profit

Maintaining and Improving the Revenue Control System

Filters

Exam 9: Analyzing Results Using the Income Statement

High beverage inventory turnover rates accompanied by frequent product outages may indicate beverage inventory levels are too small.

What is the name of the activity that describes the recording and summarizing of a business's financial data?

What is the primary purpose of a uniform system of accounts?

"Total sales - Total cost of sales" is the formula a manager uses to calculate an operation's

Managerial accounting is the process used to document and analyze the sales, expenses, and profits of a business.

What is the formula managers use to calculate a percentage variance when comparing last year's profits to this year's profits?

What is a cost that would be classified as a controllable other expense if a manager created a P&L using the USAR format?

A Uniform Systems of Accounts describes the legally required format managers must use when preparing the financial statements of a business.

An operation had a beginning beverage inventory of $15,000 for an accounting period and an ending beverage inventory of $19,000 for the period. What was the operation's average beverage inventory value for the period?

What is the formula foodservice managers use to calculate a profit margin?

Cost of Sales is the first numerical entry on a P&L prepared using the USAR.

Last month an operation generated $200,000 in food sales and $50,000 in beverage sales. The operation had a cost of sales for beverages of $10,000. What was the operation's beverage cost percentage last month?

For what food category should inventory turnover in a food service operation be highest?

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

In the last accounting period, an operation achieved total sales of $120,000. The operation's manager then budgeted a 4.5 percent sales increase for the next accounting period. What will be the manager's budgeted sales amount for the next accounting period?

Managing Revenue and Expense

Creating Sales Forecasts

Purchasing and Receiving

Managing Inventory and Production

Monitoring Food and Beverage Product Costs

Managing Food and Beverage Pricing

Managing the Cost of Labor

Controlling Other Expenses

Planning for Profit

Maintaining and Improving the Revenue Control System

Filters