Question 1

The costs expressed on a statement of income are:

Accepted Answer

A)  planned costs 
B)  total costs 
C)  unit costs 
A)  planned costs 
B)  total costs 
C)  unit costs

Question 2

Increases in sales volume result in:

Accepted Answer

A)  unchanged variable cost per unit, but increased total variable costs. 
B)  increased variable cost per unit, but unchanged total variable costs. 
C)  decreased variable cost per unit, but increased total variable costs. 
A)  unchanged variable cost per unit, but increased total variable costs. 
B)  increased variable cost per unit, but unchanged total variable costs. 
C)  decreased variable cost per unit, but increased total variable costs.

Question 3

The industry-wide standard for food cost percent is 33.3%.

Accepted Answer

A) True 
 B)False

Question 4

Beverage cost is normally considered a fixed cost.

Accepted Answer

A) True 
 B)False

Question 5

Fixed costs are unaffected by normal fluctuations in sales volume.

Accepted Answer

A) True 
 B)False

Question 6

If food cost is $200 for a given period, and food sales for that period is $500, food cost percent is 2.5%.

Accepted Answer

A) True 
 B)False

Question 7

Examples of directly variable costs are:

Accepted Answer

A)  depreciation and license fees. 
B)  real estate taxes and insurance premiums. 
C)  food costs and beverage costs. 
A)  depreciation and license fees. 
B)  real estate taxes and insurance premiums. 
C)  food costs and beverage costs.

Question 8

Directly variable costs are normally controllable.

Accepted Answer

A) True 
 B)False

Question 9

Cost percentages provide a useful means of comparing:

Accepted Answer

A)  costs for two or more different types of businesses. 
B)  two or more different types of costs. 
C)  costs for two or more time periods in one establishment. 
A)  costs for two or more different types of businesses. 
B)  two or more different types of costs. 
C)  costs for two or more time periods in one establishment.

Question 10

If a business is to be profitable, costs must always be:

Accepted Answer

A)  more than 100.0% of sales 
B)  less than 100.0% of sales 
C)  equal to sales 
A)  more than 100.0% of sales 
B)  less than 100.0% of sales 
C)  equal to sales

Question 11

The term average dollar sale refers to:

Accepted Answer

A)  total dollar sales divided by total number of customers. 
B)  prime cost divided by the number of covers. 
C)  the menu sales price for a given item, plus tax and tip. 
A)  total dollar sales divided by total number of customers. 
B)  prime cost divided by the number of covers. 
C)  the menu sales price for a given item, plus tax and tip.

Question 12

The cost of a single portion of a given menu item may be considered:

Accepted Answer

A)  a unit cost. 
B)  a total cost. 
C)  a noncontrollable cost. 
A)  a unit cost. 
B)  a total cost. 
C)  a noncontrollable cost.

Question 13

Average dollar sale is equal to total number of covers divided by total dollar sales.

Accepted Answer

A) True 
 B)False

Question 14

Dollar figures are normally more useful than cost percentages for comparing one operating period with another in a given restaurant.

Accepted Answer

A) True 
 B)False

The costs expressed on a statement of income are:

Increases in sales volume result in:

The industry-wide standard for food cost percent is 33.3%.

Beverage cost is normally considered a fixed cost.

Fixed costs are unaffected by normal fluctuations in sales volume.

If food cost is $200 for a given period, and food sales for that period is $500, food cost percent is 2.5%.

Examples of directly variable costs are:

Directly variable costs are normally controllable.

Cost percentages provide a useful means of comparing:

If a business is to be profitable, costs must always be:

The term average dollar sale refers to:

The cost of a single portion of a given menu item may be considered:

Average dollar sale is equal to total number of covers divided by total dollar sales.

Dollar figures are normally more useful than cost percentages for comparing one operating period with another in a given restaurant.

The Control Process

Costvolumeprofit Relationships

Food Purchasing and Receiving Control

Food Storing and Issuing Control

Food Production Control I: Portions

Food Production Control II: Quantities

Monitoring Foodservice Operations I: Monthly Inventory and Monthly Food Cost

Monitoring Foodservice Operations II: Daily Food Cost

Monitoring Foodservice Operations III: Actual Versus Standard Food Costs

Menu Engineering and Analysis

Controlling Food Sales

Beverage Purchasing Control

Beverage Receiving, Storing, and Issuing Control

Beverage Production Control

Monitoring Beverage Operations

Beverage Sales Control

Labor Cost Considerations

Establishing Performance Standards

Training Staff

Monitoring Performance and Taking Corrective Action

Filters

Exam 1: Cost and Sales Concepts

The costs expressed on a statement of income are:

Increases in sales volume result in:

The industry-wide standard for food cost percent is 33.3%.

Beverage cost is normally considered a fixed cost.

Fixed costs are unaffected by normal fluctuations in sales volume.

If food cost is $200 for a given period, and food sales for that period is $500, food cost percent is 2.5%.

Examples of directly variable costs are:

Directly variable costs are normally controllable.

Cost percentages provide a useful means of comparing:

If a business is to be profitable, costs must always be:

The term average dollar sale refers to:

The cost of a single portion of a given menu item may be considered:

Average dollar sale is equal to total number of covers divided by total dollar sales.

Dollar figures are normally more useful than cost percentages for comparing one operating period with another in a given restaurant.

The Control Process

Costvolumeprofit Relationships

Food Purchasing and Receiving Control

Food Storing and Issuing Control

Food Production Control I: Portions

Food Production Control II: Quantities

Monitoring Foodservice Operations I: Monthly Inventory and Monthly Food Cost

Monitoring Foodservice Operations II: Daily Food Cost

Monitoring Foodservice Operations III: Actual Versus Standard Food Costs

Menu Engineering and Analysis

Controlling Food Sales

Beverage Purchasing Control

Beverage Receiving, Storing, and Issuing Control

Beverage Production Control

Monitoring Beverage Operations

Beverage Sales Control

Labor Cost Considerations

Establishing Performance Standards

Training Staff

Monitoring Performance and Taking Corrective Action

Filters