Question 1

What is the effect on an operation's mixed expense when the operation's sales volume increases?

Accepted Answer

A)  Mixed expense amount increases, mixed expense percentage decreases 
B)  Mixed expense amount increases, mixed expense percentage increases 
C)  Mixed expense amount decreases, mixed expense percentage decreases 
D)  Mixed expense amount decreases, mixed expense percentage increases 
A)  Mixed expense amount increases, mixed expense percentage decreases 
B)  Mixed expense amount increases, mixed expense percentage increases 
C)  Mixed expense amount decreases, mixed expense percentage decreases 
D)  Mixed expense amount decreases, mixed expense percentage increases A

Question 2

A foodservice manager pays $300 per month for landscaping services. What type of "Other expense" is the amount paid for the landscaping services?

Accepted Answer

A)  Controllable, fixed 
B)  Controllable, variable 
C)  Non-controllable, fixed 
D)  Non-controllable, variable 
A)  Controllable, fixed 
B)  Controllable, variable 
C)  Non-controllable, fixed 
D)  Non-controllable, variable A

Question 3

A manager must pay a $500 annual fee to the state in order to obtain a license to serve alcohol. What type of "Other expense" is the amount paid for the license?

Accepted Answer

A)  Controllable, fixed 
B)  Controllable, variable 
C)  Non-controllable, fixed 
D)  Non-controllable, variable 
A)  Controllable, fixed 
B)  Controllable, variable 
C)  Non-controllable, fixed 
D)  Non-controllable, variable C

Question 4

A fixed expense percentage in a foodservice operation will decline as sales volume declines.

Accepted Answer

A) True 
 B)False

Question 5

What is the formula a manager uses to calculate an "Other expense" cost percentage?

Accepted Answer

A)  Total sales x Other expense = Other expense percentage 
B)  Total sales ÷ Other expense = Other expense percentage 
C)  Other expense + Total sales = Other expense percentage 
D)  Other expense ÷ Total sales = Other expense percentage 
A)  Total sales x Other expense = Other expense percentage 
B)  Total sales ÷ Other expense = Other expense percentage 
C)  Other expense + Total sales = Other expense percentage 
D)  Other expense ÷ Total sales = Other expense percentage

Question 6

Occupancy costs in a foodservice operation are a non-controllable expense.

Accepted Answer

A) True 
 B)False

Question 7

The total dollar amount of an operation's fixed expenses

Accepted Answer

A)  varies with volume. 
B)  only varies with changes in the number of guests served. 
C)  varies with changes in volume and changes in the number of guests served. 
D)  does not vary with changes in volume or changes in the number of guests served. 
A)  varies with volume. 
B)  only varies with changes in the number of guests served. 
C)  varies with changes in volume and changes in the number of guests served. 
D)  does not vary with changes in volume or changes in the number of guests served.

Question 8

A kilowatt hour (kWh) is a measure of natural gas usage.

Accepted Answer

A) True 
 B)False

Question 9

What is the formula managers use to calculate Other expense cost per guest?

Accepted Answer

A)  Other expense x Number of guests served = Other expense cost per guest 
B)  Other expense ÷ Number of guests served = Other expense cost per guest 
C)  Number of guests served + Other expense = Other expense cost per guest 
D)  Number of guests served ÷ Other expense = Other expense cost per guest 
A)  Other expense x Number of guests served = Other expense cost per guest 
B)  Other expense ÷ Number of guests served = Other expense cost per guest 
C)  Number of guests served + Other expense = Other expense cost per guest 
D)  Number of guests served ÷ Other expense = Other expense cost per guest

Question 10

An operation has an expense that is 100% variable. If that operation's sales volume decreases, the amount spent on this variable expense will

Accepted Answer

A)  increase and the variable expense percentage will increase. 
B)  decrease and the variable expense percentage will decrease. 
C)  increase and the variable expense percentage will be unchanged. 
D)  decrease and the variable expense percentage will be unchanged. 
A)  increase and the variable expense percentage will increase. 
B)  decrease and the variable expense percentage will decrease. 
C)  increase and the variable expense percentage will be unchanged. 
D)  decrease and the variable expense percentage will be unchanged.

Question 11

What will be the effect on an operation's fixed expense when the operation's sales volume increases?

Accepted Answer

A)  Fixed expense amount increases, fixed expense percentage increases 
B)  Fixed expense amount increases, fixed expense percentage decreases 
C)  Fixed expense amount is unchanged, fixed expense percentage increases 
D)  Fixed expense amount is unchanged, fixed expense percentage decreases 
A)  Fixed expense amount increases, fixed expense percentage increases 
B)  Fixed expense amount increases, fixed expense percentage decreases 
C)  Fixed expense amount is unchanged, fixed expense percentage increases 
D)  Fixed expense amount is unchanged, fixed expense percentage decreases

Question 12

For a foodservice manager who is not the building's owner, the majority of that manager's occupancy costs will be

Accepted Answer

A)  fixed and controllable. 
B)  variable and controllable. 
C)  fixed and non-controllable. 
D)  variable and non-controllable. 
A)  fixed and controllable. 
B)  variable and controllable. 
C)  fixed and non-controllable. 
D)  variable and non-controllable.

Question 13

What is an example of a mixed other expense in a foodservice operation?

Accepted Answer

A)  Payroll taxes 
B)  Insurance policy premiums 
C)  Expense of heating and cooling dining rooms 
D)  Contributions to employee 401(k) plans. 
A)  Payroll taxes 
B)  Insurance policy premiums 
C)  Expense of heating and cooling dining rooms 
D)  Contributions to employee 401(k) plans.

Question 14

A manager pays a monthly mortgage on a restaurant building. What type of "Other expense" is the amount paid for the mortgage?

Accepted Answer

A)  Controllable, fixed 
B)  Controllable, variable 
C)  Non-controllable, fixed 
D)  Non-controllable, variable 
A)  Controllable, fixed 
B)  Controllable, variable 
C)  Non-controllable, fixed 
D)  Non-controllable, variable

Question 15

What is a cost that would be classified as an "Other expense" in a foodservice operation that features fried chicken on its menu?

Accepted Answer

A)  Salaries 
B)  Electricity 
C)  Payroll taxes 
D)  Chicken quarters 
A)  Salaries 
B)  Electricity 
C)  Payroll taxes 
D)  Chicken quarters

Question 16

What will be a manager's "Other expense" percentage for utilities if sales were $75,000 in a month and utility costs for the month were $6,000?

Accepted Answer

A)  0.8% 
B)  1.25% 
C)  8.0% 
D)  12.5% 
A)  0.8% 
B)  1.25% 
C)  8.0% 
D)  12.5%

Question 17

When expressed as a percentage of sales, a mixed expense will decrease as sales increases.

Accepted Answer

A) True 
 B)False

Question 18

What are the operating costs that are excluded from an operation's "Other expenses" cost category?

Accepted Answer

A)  Food and labor 
B)  Rent and insurance 
C)  Equipment and repairs 
D)  Franchisee fees and credit card fees 
A)  Food and labor 
B)  Rent and insurance 
C)  Equipment and repairs 
D)  Franchisee fees and credit card fees

Question 19

Monitoring Other expense cost per guest is especially useful when an operation

Accepted Answer

A)  collects revenue on a daily basis. 
B)  has fixed costs that exceed its variable costs. 
C)  has variable costs that exceed its fixed costs. 
D)  does not collect revenue on a daily basis. 
A)  collects revenue on a daily basis. 
B)  has fixed costs that exceed its variable costs. 
C)  has variable costs that exceed its fixed costs. 
D)  does not collect revenue on a daily basis.

Question 20

What is the typical range for a foodservice operation's total "Other expense" costs?

Accepted Answer

A)  Less than 5% of sales volume 
B)  5% to 15% of sales volume 
C)  25% to 35% of sales volume 
D)  45% to 55% of sales volume 
A)  Less than 5% of sales volume 
B)  5% to 15% of sales volume 
C)  25% to 35% of sales volume 
D)  45% to 55% of sales volume

What is the effect on an operation's mixed expense when the operation's sales volume increases?

A foodservice manager pays $300 per month for landscaping services. What type of "Other expense" is the amount paid for the landscaping services?

A manager must pay a $500 annual fee to the state in order to obtain a license to serve alcohol. What type of "Other expense" is the amount paid for the license?

A fixed expense percentage in a foodservice operation will decline as sales volume declines.

What is the formula a manager uses to calculate an "Other expense" cost percentage?

Occupancy costs in a foodservice operation are a non-controllable expense.

The total dollar amount of an operation's fixed expenses

A kilowatt hour (kWh) is a measure of natural gas usage.

What is the formula managers use to calculate Other expense cost per guest?

An operation has an expense that is 100% variable. If that operation's sales volume decreases, the amount spent on this variable expense will

What will be the effect on an operation's fixed expense when the operation's sales volume increases?

For a foodservice manager who is not the building's owner, the majority of that manager's occupancy costs will be

What is an example of a mixed other expense in a foodservice operation?

A manager pays a monthly mortgage on a restaurant building. What type of "Other expense" is the amount paid for the mortgage?

What is a cost that would be classified as an "Other expense" in a foodservice operation that features fried chicken on its menu?

What will be a manager's "Other expense" percentage for utilities if sales were $75,000 in a month and utility costs for the month were $6,000?

When expressed as a percentage of sales, a mixed expense will decrease as sales increases.

What are the operating costs that are excluded from an operation's "Other expenses" cost category?

Monitoring Other expense cost per guest is especially useful when an operation

What is the typical range for a foodservice operation's total "Other expense" costs?

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

Analyzing Results Using the Income Statement

Planning for Profit

Maintaining and Improving the Revenue Control System

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Exam 8: Controlling Other Expenses

What is the effect on an operation's mixed expense when the operation's sales volume increases?

A foodservice manager pays $300 per month for landscaping services. What type of "Other expense" is the amount paid for the landscaping services?

A manager must pay a $500 annual fee to the state in order to obtain a license to serve alcohol. What type of "Other expense" is the amount paid for the license?

A fixed expense percentage in a foodservice operation will decline as sales volume declines.

What is the formula a manager uses to calculate an "Other expense" cost percentage?

Occupancy costs in a foodservice operation are a non-controllable expense.

The total dollar amount of an operation's fixed expenses

A kilowatt hour (kWh) is a measure of natural gas usage.

What is the formula managers use to calculate Other expense cost per guest?

An operation has an expense that is 100% variable. If that operation's sales volume decreases, the amount spent on this variable expense will

What will be the effect on an operation's fixed expense when the operation's sales volume increases?

For a foodservice manager who is not the building's owner, the majority of that manager's occupancy costs will be

What is an example of a mixed other expense in a foodservice operation?

A manager pays a monthly mortgage on a restaurant building. What type of "Other expense" is the amount paid for the mortgage?

What is a cost that would be classified as an "Other expense" in a foodservice operation that features fried chicken on its menu?

What will be a manager's "Other expense" percentage for utilities if sales were $75,000 in a month and utility costs for the month were $6,000?

When expressed as a percentage of sales, a mixed expense will decrease as sales increases.

What are the operating costs that are excluded from an operation's "Other expenses" cost category?

Monitoring Other expense cost per guest is especially useful when an operation

What is the typical range for a foodservice operation's total "Other expense" costs?

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

Analyzing Results Using the Income Statement

Planning for Profit

Maintaining and Improving the Revenue Control System

Filters