Question 1

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

Question 2

The financial statement that shows financial position at a point in time is the

Accepted Answer

A)  income statement. 
B)  statement of change in financial position. 
C)  P&L statement. 
D)  balance sheet. 
A)  income statement. 
B)  statement of change in financial position. 
C)  P&L statement. 
D)  balance sheet.

Question 3

Assets and liabilities are a part of which financial statement?

Accepted Answer

A)  income statement 
B)  P&L statement 
C)  balance sheet 
D)  opening budget 
A)  income statement 
B)  P&L statement 
C)  balance sheet 
D)  opening budget

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

Question 6

The pay back period is

Accepted Answer

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

Question 7

Accumulated depreciation is applied to which balance sheet category?

Accepted Answer

A)  current assets 
B)  fixed assets 
C)  current liabilities 
D)  long-term liabilities 
A)  current assets 
B)  fixed assets 
C)  current liabilities 
D)  long-term liabilities

Question 8

Which of the following statements is true?

Accepted Answer

A)  Total fixed costs do not vary with changes in sales volume. 
B)  Total fixed cost per unit do not vary with changes in sales volume. 
C)  Total variable costs do not vary with changes in sales volume. 
D)  Total costs do not vary with changes in sales volume. 
A)  Total fixed costs do not vary with changes in sales volume. 
B)  Total fixed cost per unit do not vary with changes in sales volume. 
C)  Total variable costs do not vary with changes in sales volume. 
D)  Total costs do not vary with changes in sales volume.

Question 9

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 10

The denominator used when calculating a common size income statement is

Accepted Answer

A)  total assets. 
B)  total liabilities. 
C)  total sales. 
D)  total expenses. 
A)  total assets. 
B)  total liabilities. 
C)  total sales. 
D)  total expenses.

Question 11

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

Question 12

The formula to calculate food cost percentage is _____________.

Accepted Answer

The answer of The formula to calculate food cost percentage...

Question 13

The breakeven point is the point at which _________ and _______ are equal.

Accepted Answer

total reve

Question 14

The time value of money concept suggests that having a $1.00 in the future is worth more than having a $1.00 today.

Accepted Answer

A) True 
 B)False

Question 15

The breakeven point is where

Accepted Answer

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

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

The financial statement that shows financial position at a point in time is the

Assets and liabilities are a part of which financial statement?

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

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 pay back period is

Accumulated depreciation is applied to which balance sheet category?

Which of the following statements is true?

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

The denominator used when calculating a common size income statement is

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

The formula to calculate food cost percentage is _____________.

The breakeven point is the point at which ___ and _ are equal.

The time value of money concept suggests that having a $1.00 in the future is worth more than having a $1.00 today.

The breakeven point is where

Systems Approach to a Foodservice Organization

Managing Quality

The Menu

Food Product Flow

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

The financial statement that shows financial position at a point in time is the

Assets and liabilities are a part of which financial statement?

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

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 pay back period is

Accumulated depreciation is applied to which balance sheet category?

Which of the following statements is true?

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

The denominator used when calculating a common size income statement is

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

The formula to calculate food cost percentage is _____________.

The breakeven point is the point at which _________ and _______ are equal.

The time value of money concept suggests that having a $1.00 in the future is worth more than having a $1.00 today.

The breakeven point is where

Systems Approach to a Foodservice Organization

Managing Quality

The Menu

Food Product Flow

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

The breakeven point is the point at which ___ and _ are equal.