Question 1

Standard portion costs are normally cost estimates made by a chef.

Accepted Answer

A) True 
 B)False  False

Question 2

The industry-wide standard for acceptable discrepancies between actual and standard cost percents is 1.0%.

Accepted Answer

A) True 
 B)False  False

Question 3

If management directs that the standard portion size for a given item will be increased, which of the following should also increase?

Accepted Answer

A)  actual portion cost 
B)  standard portion cost 
C)  both (a) and (b) are correct 
A)  actual portion cost 
B)  standard portion cost 
C)  both (a) and (b) are correct C

Question 4

A menu precost and abstract is used to predict actual cost for a future period or date.

Accepted Answer

A) True 
 B)False

Question 5

If actual and standard costs for a given month are not the same in a particular restaurant, one would normally expect standard cost to be the higher figure.

Accepted Answer

A) True 
 B)False

Question 6

The total cost for all items sold as determined on the right side of the menu precost and abstract is:

Accepted Answer

A)  actual cost for the day or period covered by the menu precost and abstract 
B)  number of sales forecasted multiplied by standard portion cost 
C)  standard cost for the day or period covered by the menu precost and abstract 
A)  actual cost for the day or period covered by the menu precost and abstract 
B)  number of sales forecasted multiplied by standard portion cost 
C)  standard cost for the day or period covered by the menu precost and abstract

Question 7

If actual cost for a period is $47,250 and standard cost for that same period is $44,750, the dollar difference between the two figures can be viewed as:

Accepted Answer

A)  waste 
B)  potential savings 
C)  both (a) and (b) are correct 
A)  waste 
B)  potential savings 
C)  both (a) and (b) are correct

Question 8

Potential savings may be defined as the difference between actual cost and standard cost.

Accepted Answer

A) True 
 B)False

Question 9

The owner of Snidley's Restaurant has developed a simple three-item menu for use in her establishment. Each menu item represents a complete meal. She has determined standard cost for each listed item and has kept careful records for the month of October. Given the information below, calculate potential savings as a percentage of sales for the month.
Menu Item Number Sold Portion Cost Sales Price
A 400 $2.00 $5.00
B 500 $3.00 $8.00
C 600 $4.00 $10.00
Actual cost for the month was $5,100, and sales were $12,000.

Accepted Answer

A)  1.0% 
B)  2.7% 
C)  3.3% 
A)  1.0% 
B)  2.7% 
C)  3.3%

Question 10

"Potential savings"
and "excessive cost"
are two different terms for the same concept.

Accepted Answer

A) True 
 B)False

Question 11

Actual cost for March in a nearby restaurant was $35,000, and standard cost for the same period was $32,000. Sales were $100,000 for the month. Given this information, one can determine that potential savings for the period was:

Accepted Answer

A)  32.0% 
B)  $3,000 
C)  neither (a) nor (b) is correct 
A)  32.0% 
B)  $3,000 
C)  neither (a) nor (b) is correct

Question 12

On the menu precost and abstract form, the food cost percent shown for each individual menu item listed is a standard cost percent, not an actual cost percent.

Accepted Answer

A) True 
 B)False

Question 13

Given the information in 5 above, potential savings for September is calculated to be:

Accepted Answer

A)  $2450 
B)  $7000 
C)  the 
A)  $2450 
B)  $7000 
C)  the

Question 14

One advantage of calculating potential savings daily rather than periodically is the timeliness of the result.

Accepted Answer

A) True 
 B)False

Question 15

In most restaurants, standard cost percent and actual cost percent are the same.

Accepted Answer

A) True 
 B)False

Question 16

The standard portion cost for a menu item as shown on the menu precost and abstract is:

Accepted Answer

A)  the same on both the left and right sides of the form 
B)  typically higher on the right than on the left 
C)  typically higher on the left than on the right 
A)  the same on both the left and right sides of the form 
B)  typically higher on the right than on the left 
C)  typically higher on the left than on the right

Question 17

The right side of the menu precost and abstract is completed_____sales have taken place.

Accepted Answer

A)  before 
B)  after 
C)  either before or after, depending on the decision of management in a particular restaurant. 
A)  before 
B)  after 
C)  either before or after, depending on the decision of management in a particular restaurant.

Question 18

In Fribney's Restaurant, actual cost for September was $49,000. Sales for September were $140,000. Standard cost percent was 5.0% lower than actual cost percent. Standard cost percent was:

Accepted Answer

A)  5.0% 
B)  30.0% 
C)  35.0% 
A)  5.0% 
B)  30.0% 
C)  35.0%

Question 19

A menu precost and abstract incorporates a forecast of portion sales, and cannot be prepared without such a forecast.

Accepted Answer

A) True 
 B)False

Question 20

Pilferage and overproduction are two important causes of unwarranted increases in:

Accepted Answer

A)  standard costs 
B)  forecasted costs 
C)  actual costs 
A)  standard costs 
B)  forecasted costs 
C)  actual costs

Standard portion costs are normally cost estimates made by a chef.

The industry-wide standard for acceptable discrepancies between actual and standard cost percents is 1.0%.

If management directs that the standard portion size for a given item will be increased, which of the following should also increase?

A menu precost and abstract is used to predict actual cost for a future period or date.

If actual and standard costs for a given month are not the same in a particular restaurant, one would normally expect standard cost to be the higher figure.

The total cost for all items sold as determined on the right side of the menu precost and abstract is:

If actual cost for a period is $47,250 and standard cost for that same period is $44,750, the dollar difference between the two figures can be viewed as:

Potential savings may be defined as the difference between actual cost and standard cost.

"Potential savings" and "excessive cost" are two different terms for the same concept.

Actual cost for March in a nearby restaurant was $35,000, and standard cost for the same period was $32,000. Sales were $100,000 for the month. Given this information, one can determine that potential savings for the period was:

On the menu precost and abstract form, the food cost percent shown for each individual menu item listed is a standard cost percent, not an actual cost percent.

Given the information in 5 above, potential savings for September is calculated to be:

One advantage of calculating potential savings daily rather than periodically is the timeliness of the result.

In most restaurants, standard cost percent and actual cost percent are the same.

The standard portion cost for a menu item as shown on the menu precost and abstract is:

The right side of the menu precost and abstract is completed_____sales have taken place.

In Fribney's Restaurant, actual cost for September was $49,000. Sales for September were $140,000. Standard cost percent was 5.0% lower than actual cost percent. Standard cost percent was:

A menu precost and abstract incorporates a forecast of portion sales, and cannot be prepared without such a forecast.

Pilferage and overproduction are two important causes of unwarranted increases in:

Cost and Sales Concepts

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

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 10: Monitoring Foodservice Operations III: Actual Versus Standard Food Costs

Standard portion costs are normally cost estimates made by a chef.

The industry-wide standard for acceptable discrepancies between actual and standard cost percents is 1.0%.

If management directs that the standard portion size for a given item will be increased, which of the following should also increase?

A menu precost and abstract is used to predict actual cost for a future period or date.

If actual and standard costs for a given month are not the same in a particular restaurant, one would normally expect standard cost to be the higher figure.

The total cost for all items sold as determined on the right side of the menu precost and abstract is:

If actual cost for a period is $47,250 and standard cost for that same period is $44,750, the dollar difference between the two figures can be viewed as:

Potential savings may be defined as the difference between actual cost and standard cost.

"Potential savings" and "excessive cost" are two different terms for the same concept.

Actual cost for March in a nearby restaurant was $35,000, and standard cost for the same period was $32,000. Sales were $100,000 for the month. Given this information, one can determine that potential savings for the period was:

On the menu precost and abstract form, the food cost percent shown for each individual menu item listed is a standard cost percent, not an actual cost percent.

Given the information in 5 above, potential savings for September is calculated to be:

One advantage of calculating potential savings daily rather than periodically is the timeliness of the result.

In most restaurants, standard cost percent and actual cost percent are the same.

The standard portion cost for a menu item as shown on the menu precost and abstract is:

The right side of the menu precost and abstract is completed_____sales have taken place.

In Fribney's Restaurant, actual cost for September was $49,000. Sales for September were $140,000. Standard cost percent was 5.0% lower than actual cost percent. Standard cost percent was:

A menu precost and abstract incorporates a forecast of portion sales, and cannot be prepared without such a forecast.

Pilferage and overproduction are two important causes of unwarranted increases in:

Cost and Sales Concepts

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

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