Deck 7: Managing the Cost of Labor

Question 1

What is the category of workers that are generally exempt from the overtime pay provisions of the Fair Labor Standards Act (FLSA)?

A) Tipped employees
B) Salaried employees
C) Unionized employees
D) Hourly paid employees

Answer 1

B

Question 2

What employee-related expense category will be the largest in a typical food service operation?

A) Labor
B) Wages
C) Salaries
D) Payroll

Answer 2

A

Question 3

What do managers measure when they calculate a productivity ratio?

A) Profit margin
B) Labor usage
C) Inventory turnover
D) Hourly sales levels

Answer 3

B

Question 4

What is a location that would be considered a front of house (FOH) area in a food service operation?

A) Bakeshop
B) Dining room
C) Beverage storage room
D) Salad preparation area

Question 5

What information should be included in a job description for a cook?

A) A description of the skills required to hold the job
B) A listing of all tasks required to complete the job
C) The name of the person to whom the cook would report
D) Identification of the times at which the cook would be scheduled to work

Question 6

What step should managers complete first when they develop a task training program?

A) Planning the training session
B) Presenting the training session
C) Determining how the task is to be done
D) Evaluating the effectiveness of the task training

Question 7

What step should managers complete last when they develop a task training program?

A) Presenting the training session
B) Retraining at the proper interval
C) Determining how the task is to be done
D) Evaluating the effectiveness of the training

Question 8

What is a requirement for an organization implementing a cloud-based employee scheduling system?

A) All of its employees are full-time employees
B) It provides all of its employees access to internet
C) It employs a large number of workers
D) It employs a small number of part-time employees

Question 9

A manager employed 100 workers at the beginning of an accounting period, and 120 workers at the end of the same period. During the period 50 employees voluntarily left their employment and 5 employees were terminated. What was this manager's overall employee turnover rate in the accounting period?

A) 40%
B) 50%
C) 400%
D) 500%

Question 10

What will be the normal impact on costs when managers buy convenience items rather than make those same items from scratch?

A) Food costs increase and labor costs increase
B) Food costs decrease and labor costs increase
C) Food costs increase and labor costs decrease
D) Food costs decrease and labor costs decrease

Question 11

What measure of labor productivity compares the price paid for labor with the revenue generated in a food service operation?

A) Sales per labor hour
B) Labor cost percentage
C) Labor dollars per guest served
D) Guests served per labor hour

Question 12

What measure of labor productivity would increase if a manager gave all kitchen employees a 2% cost of living pay increase?

A) RevPASH
B) Sales per labor hour
C) Labor cost percentage
D) Guests served per labor hour

Question 13

Which measure of labor productivity is unaffected by changes in menu prices and the price paid for labor?

A) Sales per labor hour
B) Labor cost percentage
C) Labor dollars per guest served
D) Guests served per labor hour

Question 14

On Monday, a manager's operation generated revenue of $1,200. The manager served 100 guests, used 25 total hours of labor, and had a labor cost of $300. What was the manager's labor cost percentage on Monday?

A) 20%
B) 25%
C) 30%
D) 35%

Question 15

On Monday, a manager's operation generated revenue of $1,200. The manager served 100 guests, used 25 total hours of labor, and had a labor cost of $300. What were the manager's sales per labor hour on Monday?

A) $48.00
B) $50.00
C) $52.00
D) $54.00

Question 16

On Monday, a manager's operation generated revenue of $1,200. The manager served 100 guests, used 25 total hours of labor, and had a labor cost of $300. What was the manager's number of guests served per labor hour on Monday?

A) 2
B) 4
C) 20
D) 40

Question 17

What is the measure of labor efficiency that requires managers to consider the number of seats made available to their customers?

A) RevPASH
B) Labor cost percentage
C) Guests served per labor hour
D) Guests served per labor dollar

Question 18

A manager estimates that 2,000 guests will be served next week. The manager's operation serves 2.5 guests per labor dollar expended. What will be the manager's estimated cost of labor next week?

A) $500
B) $800
C) $5,000
D) $8,000

Question 19

What is the first step in the 4-step process of managing payroll costs?

A) Analyzing results
B) Scheduling employees
C) Forecasting sales volume
D) Determining productivity standards

Question 20

What is the final step in the 4-step process used to manage payroll costs?

A) Analyzing results
B) Scheduling employees
C) Forecasting sales volume
D) Determining productivity standards

Question 21

A manager forecasts that 150 guests will be served tomorrow. The manager knows that one server can provide high-quality service for 30 guests and one cook can prepare high-quality food for 60 guests. How many servers and cooks should be scheduled for tomorrow?

A) 3 servers and 2 cooks
B) 3 servers and 3 cooks
C) 5 servers and 2 cooks
D) 5 servers and 3 cooks

Question 22

What will be the effect on fixed and variable labor cost percentages if an operation increases its sales volume?

A) Fixed labor cost percentage and variable labor cost percentage will decline
B) Fixed labor cost percentage will increase and variable percentage will decline
C) Fixed labor cost percentage will decline and variable percentage will stay the same
D) Fixed labor cost percentage will increase and variable percentage will stay the same

Question 23

A food service operation experienced a 10% decline in volume this month when compared to the previous month. If the reduction in volume was anticipated and scheduled for properly, the operation's

A) fixed and variable labor cost percentages will decrease.
B) fixed and variable labor cost percentages will increase.
C) fixed labor cost percentage will increase and its variable cost percentage will stay the same.
D) fixed labor cost percentage will decrease and its variable cost percentage will stay the same.

Question 24

When managers take steps to empower their employees, these employees will have increased

A) pay.
B) benefit packages.
C) authority to make decisions.
D) ability to set their own work schedules.

Question 25

An operation's payroll includes its wages, salaries and benefit costs.

Question 26

The formula managers use to measure productivity is: Output (÷) Input = Productivity.

Question 27

A job specification is a listing of the tasks that must be accomplished by employees hired to fill a particular position.

Question 28

Interviewing and training time are examples of the hidden costs of employee turnover.

Question 29

Involuntary separation occurs when an employee, rather than the employee's manager, makes the decision for the employee to leave an organization.

Question 30

If an operation achieved $8,000 in sales for one day and a labor cost of $1,760 for that same day, then the operation achieved a 22% labor cost.

Question 31

An increase in its menu prices will have no effect on an operation's RevPASH.

Question 32

The first step in the management of payroll cost is the determination of productivity standards.

Question 33

Managers can reduce their operations' variable labor cost percentages by increasing worker productivity.