Deck 2: Creating Sales Forecasts

Question 1

A sales forecast estimates both the number of guests to be served in a specific time-period and the

A) time required to serve them.
B) amount each guest will spend.
C) profits made in that time period.
D) expenses incurred in that time period.

Answer 1

B

Question 2

What does a foodservice operation's POS system record?

A) Only the operation's sales volume
B) Only the customers' payment information
C) Both sales volume and customer payment information
D) Sales volume, customer payment information, and profits

Answer 2

C

Question 3

What is the foodservice industry term for the amount of money that results when a manager adds the sales of today to the sales of all prior days in a reporting period?

A) Annual sales
B) Daily revenue
C) Sales variance
D) Sales to date

Answer 3

D

Question 4

A manager had sales of $800 on Monday, $1,000 on Tuesday, $750 on Wednesday, $1,300 on Thursday and $2,000 on Friday. What was the manager's average daily revenue for those five days?

A) $970
B) $1,170
C) $1,370
D) $1,570

Question 5

Foodservice managers who use seven day rolling averages to monitor their weekly sales do so because it

A) reduces their operating expenses.
B) increases their operational profitability.
C) utilizes the operation's most recent sales information.
D) reduces the amount of time required to report operational sales.

Question 6

On Monday, a restaurant served 250 guests and achieved a check average of $12.55. What was the operation's total revenue on Monday?

A) $5,020.00
B) $3,137.50
C) $31,375.00
D) $50,200.50

Question 7

On Monday, a QSR served 500 guests and achieved revenue of $3,250. What was the operation's check average on Monday?

A) $1.50
B) $1.54
C) $6.50
D) $6.54

Question 8

A "weighted average sale per guest" is a calculation of the number of guests served in a number of time periods and

A) the amount of profit made in the same time periods.
B) how much the guests spent in the same time periods.
C) the total amount of expense incurred in the same time periods.
D) how many hours the operation is open during all of the same time periods.

Question 9

What is the minimum length of time foodservice operations should keep their sales history records on file?

A) One month
B) Two months
C) One year
D) Two years

Question 10

A manager calculates that the decimal form percentage increase in her customer count this month when compared to last month is 0.055. To convert this decimal form percentage increase to the more frequently used common form percentage, this manager should

A) divide by 10.
B) multiply by 10.
C) move the decimal point two places to the left.
D) move the decimal point two places to the right.

Question 11

At the end of this month, an operation had achieved sales of $15,000. In the previous month the operation achieved sales of $12,000. What was the operation's sales percentage increase for this month?

A) 10%
B) 15%
C) 20%
D) 25%

Question 12

Last year, an operation achieved $800,000 in sales. For next year, the operation's manager predicts a 4% increase in sales. What is the manager's sales forecast for next year?

A) $804,000
B) $832,000
C) $864,000
D) $882,000

Question 13

What is the total revenue forecast for the 6-month period?

A) $263,160
B) $265,180
C) $267,180
D) $269,320

Question 14

What is the total estimated dollar increase in sales for the 6-month period?

A) $5,160
B) $6,450
C) $7,180
D) $10,320

Question 15

What is the weighted average percentage increase in sales for the 6-month period?

A) 1.78%
B) 2.15%
C) 2.78%
D) 3.15%

Question 16

An operation served 18,000 guests last month. The operation's manager forecasts an 8% increase in guests to be served next month. If the manager's forecast is correct, how many guests will be served next month?

A) 17,440
B) 18,440
C) 19,440
D) 20,440

Question 17

A manager's operation currently has an average sale per guest of $9.00. For the upcoming accounting period, the manager predicts 8,000 guests will be served at a check average 5% higher than the current average sale per guest. What will be this manager's revenue forecast for the upcoming period?

A) $72,000
B) $75,600
C) $79,200
D) $82,800

Question 18

What is the formula managers use to calculate their Average Sales Per Guest?

A) Total Sales x Number of Guests Served = Average Sales per Guest
B) Total Sales ÷ Number of Guests Served = Average Sales per Guest
C) Number of Guests Served x Check Average = Average Sales per Guest
D) Number of Guests Served ÷ Total Sales = Average Sales per Guest

Question 19

A restaurant achieved $853,564 in sales this year and $769,278 in sales last year. When rounded to the nearest whole percent, what was the restaurant's percentage variance in sales this year when compared to last year?

A) 10% increase
B) 10% decrease
C) 11% increase
D) 11% decrease

Question 20

If an operation's revenue forecast is $147,340 and its guest count forecast is 26,785, what is the operation's forecasted average sale per guest?

A) $1.82
B) $5.50
C) $6.50
D) $18.18

Question 21

What is the number managers use to record only the quantity of customers they have served?

A) Sales forecast
B) Check average
C) Guest count
D) Sales per guest

Question 22

What would be the most likely outcome if a foodservice manager consistently underestimated future guest counts?

A) Too few staff will be scheduled to work
B) Too many staff will be scheduled to work
C) Product costs will be less than estimated
D) Total operating expenses will be lower than estimated

Question 23

What would be the most likely outcome if a manager consistently overestimated future guest counts?

A) Too few staff will be scheduled to work
B) Too many staff will be scheduled to work
C) Guest wait times for service will likely increase
D) Total fixed expenses will be higher than originally expected

Question 24

On Monday, a QSR operation served 200 guests at an average sale per guest of $10.50. On Tuesday, it served 175 guests at an average sale per guest of $12.00. What was the QSR's average sale per guest for the two-day period?

A) $11.15
B) $11.20
C) $11.25
D) $11.30

Question 25

How frequently should managers update their operations' sales history information?

A) At least once per day
B) At least once per week
C) At least once per month
D) At least once per quarter

Question 26

Knowledge of past sales levels rarely helps managers predict future sales because unknown variables affect how much business will be done during a future period of time.

Question 27

Sales to Date is the number that results when managers add today's daily sales to the sales of all prior days in the same reporting period.

Question 28

The daily sales data used for calculating a rolling average is identical to the data used to calculate a fixed average.

Question 29

In most cases managers should keep their operations' sales history records for a period of at least two years.

Question 30

The calculation of an operation's sales variance percentage always results in a positive number.

Question 31

An operation achieved $18,000 in sales last month. This month the operation achieved $19,080 in sales. The operation's sales increase percent this month when compared to last month was 6%.

Question 32

Calculating sales variance is extremely helpful when comparing the changing financial performance of operations with very different volume levels.

Question 33

An operation achieved $8,000 in sales last month. The manager forecasts a 4% increase in sales for next month. The manager's sales forecast for next month is $8,032.

Question 34

An operation achieved an average sale per guest of $9.60 last month. The manager forecasts a 5% increase in average sale per guest for next month. The manager's average sale per guest forecast for next month is $10.08.

Question 35

Changes in selling price, new competitors, facility renovations, and improved selling programs are examples of factors that managers may need to consider when estimating future sales levels in their own operations.