Question 1

The actual cost menu pricing method incorporates fixed and variable costs and desired profit in determining the menu sales price.

Accepted Answer

A) True 
 B)False

Question 2

The breakeven point is where:

Accepted Answer

A) total revenue equals total costs. 
B) total assets equal total liabilities plus owner's equity. 
C) fixed cost equals variable cost. 
D) total profit equals total costs. 
A) total revenue equals total costs. 
B) total assets equal total liabilities plus owner's equity. 
C) fixed cost equals variable cost. 
D) total profit equals total costs.

Question 3

The pay back period is:

Accepted Answer

A) uses the table of discounted cash flows to determine yearly expected savings. 
B) is calculated by dividing initial investment by expected yearly income or savings. 
C) the time period that is required to process invoices and pay for short-life items such as food. 
D) considers the time value of money. 
A) uses the table of discounted cash flows to determine yearly expected savings. 
B) is calculated by dividing initial investment by expected yearly income or savings. 
C) the time period that is required to process invoices and pay for short-life items such as food. 
D) considers the time value of money.

Question 4

The Net Present Value method for evaluating a capital budget request incorporates the time value of money concept.

Accepted Answer

A) True 
 B)False

Question 5

A foodservice operation with a food cost of 40% has food costs that are equal to 40% of ________.

Accepted Answer

A) operating costs 
B) total costs 
C) labor costs 
D) revenue 
A) operating costs 
B) total costs 
C) labor costs 
D) revenue

Question 6

Sarah Michaels wants to evaluate her operation's efficiency by calculating the number of labor minutes per meal.Data from the previous week indicate that she served 7,500 meals.Her timecards indicated that employees worked a total of 625 hours for the week.What were labor minutes per meal for Sarah's operation?

Accepted Answer

A) .08 
B) 15 
C) 5 
D) 12 
A) .08 
B) 15 
C) 5 
D) 12

Question 7

A ________ provides a visual way to quickly access financial performance.

Accepted Answer

The answer of A ________ provides a visual way to...

Question 8

The cost method of accounting differs from the accrual method in that expenses are recorded when they are incurred in the cost method and when they are paid in the accrual method.

Accepted Answer

A) True 
 B)False

Question 9

A turkey sandwich has a food cost of $.75 and is sold for $2.25.If the manager wanted to achieve a 40% food cost,which of the following should occur?

Accepted Answer

A) The price of the sandwich should be decreased. 
B) The price of the sandwich should be increased. 
C) The ingredients in the sandwich should be changed to reduce cost of the food in the sandwich. 
D) Nothing,the food cost percentage is currently at 40%. 
A) The price of the sandwich should be decreased. 
B) The price of the sandwich should be increased. 
C) The ingredients in the sandwich should be changed to reduce cost of the food in the sandwich. 
D) Nothing,the food cost percentage is currently at 40%.

Question 10

The ________ says that a company who chooses to use the LIFO method for valuing their inventory must use that same method each year.

Accepted Answer

A) materiality principle 
B) cost principle 
C) consistency principle 
D) business entity concept 
A) materiality principle 
B) cost principle 
C) consistency principle 
D) business entity concept

Question 11

Having customers pay by the ounce for items purchased on sandwich or salad bars is an example of ________.

Accepted Answer

A) sociocultural factor planning 
B) actual cost pricing 
C) product marketing 
D) pricing psychology 
A) sociocultural factor planning 
B) actual cost pricing 
C) product marketing 
D) pricing psychology

Question 12

A budget is a plan for operating a business expressed in financial terms.

Accepted Answer

A) True 
 B)False

Question 13

Calculation of the current ratio would involve which two pieces of data?

Accepted Answer

A) total revenue and total expenses 
B) current assets and current liabilities 
C) total assets and total liabilities 
D) net profit and total sales 
A) total revenue and total expenses 
B) current assets and current liabilities 
C) total assets and total liabilities 
D) net profit and total sales

Question 14

The menu pricing method that uses desired food cost percentage in determining the menu sales price is termed the ________ pricing method.

Accepted Answer

A) factor 
B) actual 
C) value 
D) prime cost 
A) factor 
B) actual 
C) value 
D) prime cost

Question 15

One difference between a for-profit and a not-for-profit organization is:

Accepted Answer

A) excess revenue over expenses,in a for-profit organization can go to the organization's owners,in a not-for-profit organization this excess goes back into the organization. 
B) a for-profit organization is not operated for anyone's personal gain,a not-for-profit operation is expected to provide a return for its investors. 
C) a for-profit organization will budget for a profit each year and a not-for-profit will budget to break-even. 
D) a for-profit organization will prepare an income statement and balance sheet each year,a not-for-profit will not prepare these statements. 
A) excess revenue over expenses,in a for-profit organization can go to the organization's owners,in a not-for-profit organization this excess goes back into the organization. 
B) a for-profit organization is not operated for anyone's personal gain,a not-for-profit operation is expected to provide a return for its investors. 
C) a for-profit organization will budget for a profit each year and a not-for-profit will budget to break-even. 
D) a for-profit organization will prepare an income statement and balance sheet each year,a not-for-profit will not prepare these statements.

Question 16

Improving the bottom line in an organization can occur either by increasing revenues or reducing costs.

Accepted Answer

A) True 
 B)False

Question 17

A comparison of ratios over several periods of time is termed trend analysis.

Accepted Answer

A) True 
 B)False

The actual cost menu pricing method incorporates fixed and variable costs and desired profit in determining the menu sales price.

The breakeven point is where:

The pay back period is:

The Net Present Value method for evaluating a capital budget request incorporates the time value of money concept.

A foodservice operation with a food cost of 40% has food costs that are equal to 40% of ________.

A ________ provides a visual way to quickly access financial performance.

The cost method of accounting differs from the accrual method in that expenses are recorded when they are incurred in the cost method and when they are paid in the accrual method.

A turkey sandwich has a food cost of $.75 and is sold for $2.25.If the manager wanted to achieve a 40% food cost,which of the following should occur?

The ________ says that a company who chooses to use the LIFO method for valuing their inventory must use that same method each year.

Having customers pay by the ounce for items purchased on sandwich or salad bars is an example of ________.

A budget is a plan for operating a business expressed in financial terms.

Calculation of the current ratio would involve which two pieces of data?

The menu pricing method that uses desired food cost percentage in determining the menu sales price is termed the ________ pricing method.

One difference between a for-profit and a not-for-profit organization is:

Improving the bottom line in an organization can occur either by increasing revenues or reducing costs.

A comparison of ratios over several periods of time is termed trend analysis.

Systems Approach to a Foodservice Organization

Managing Quality

The Menu

Food Product Flow and Kitchen Design

Procurement

Food Production

Distribution and Service

Safety, Sanitation, and Maintenance

Management Principles

Leadership and Organizational Change

Decision Making, Communication, and Balance

Management of Human Resources

Marketing Foodservice

Meals, Satisfaction, and Accountability

Filters

Exam 13: Management of Financial Resources

The actual cost menu pricing method incorporates fixed and variable costs and desired profit in determining the menu sales price.

The breakeven point is where:

The pay back period is:

The Net Present Value method for evaluating a capital budget request incorporates the time value of money concept.

A foodservice operation with a food cost of 40% has food costs that are equal to 40% of ________.

A ________ provides a visual way to quickly access financial performance.

The cost method of accounting differs from the accrual method in that expenses are recorded when they are incurred in the cost method and when they are paid in the accrual method.

A turkey sandwich has a food cost of $.75 and is sold for $2.25.If the manager wanted to achieve a 40% food cost,which of the following should occur?

The ________ says that a company who chooses to use the LIFO method for valuing their inventory must use that same method each year.

Having customers pay by the ounce for items purchased on sandwich or salad bars is an example of ________.

A budget is a plan for operating a business expressed in financial terms.

Calculation of the current ratio would involve which two pieces of data?

The menu pricing method that uses desired food cost percentage in determining the menu sales price is termed the ________ pricing method.

One difference between a for-profit and a not-for-profit organization is:

Improving the bottom line in an organization can occur either by increasing revenues or reducing costs.

A comparison of ratios over several periods of time is termed trend analysis.

Systems Approach to a Foodservice Organization

Managing Quality

The Menu

Food Product Flow and Kitchen Design

Procurement

Food Production

Distribution and Service

Safety, Sanitation, and Maintenance

Management Principles

Leadership and Organizational Change

Decision Making, Communication, and Balance

Management of Human Resources

Marketing Foodservice

Meals, Satisfaction, and Accountability

Filters