Exam 8: Monitoring Foodservice Operations I: Monthly Inventory and Monthly Food Cost

If opening inventory is $4,000, cost of food sold is $20,000, and food sales are $80,000, then inventory turnover rate is:

When taking a physical inventory, it is good practice to:

Managers of restaurants would normally strive for lower monthly inventory turnover rates.

Closing inventory for a given period is equal to opening inventory for the preceding period.

If opening inventory is $7,000 and the closing inventory is $3,000, then average inventory is:

Overpurchasing and overproduction are likely to result in:

An increase in sales volume is likely to produce a decrease in the inventory turnover rate.

If the purchase prices of units in an inventory are marked on each unit, the most accurate method of determining the value of the closing inventory is:

The cost of food issued figure must be adjusted monthly to eliminate the cost of waste and pilferage.

Average inventory is the sum of opening and closing inventory divided by 2.

Assuming no change in sales volume, reductions in quantities of stores purchased and smaller average inventory is likely to result in:

When determining Cost of Food Consumed, promotion expense, if any, is normally added to Cost of Food Issued.

Food cost percent equals food sales divided by food cost.

If average inventory is $12,000, food sales are $90,000, and cost of food sold is $36,000, then inventory turnover rate is:

If food cost percent is 32.8%, then cost per dollar sale equals:

Employee meals are Cost of Food Issued to determine Cost of Food Consumed.

Steward Sales are normally subtracted from Cost of Food Issued to determine Cost of Food Consumed.

The difference between Cost of Food Consumed and Cost of Food Sold is: