Deck 8: Monitoring Foodservice Operations I: Monthly Inventory and Monthly Food Cost

Question 1

The cost of food issued figure must be adjusted monthly to eliminate the cost of waste and pilferage.

Answer 1

False

Question 2

Food cost percent equals food sales divided by food cost.

Answer 2

False

Question 3

Managers of restaurants would normally strive for lower monthly inventory turnover rates.

Answer 3

False

Question 4

Closing inventory for a given period is equal to opening inventory for the preceding period.

Question 5

Steward Sales are normally subtracted from Cost of Food Issued to determine Cost of Food Consumed.

Question 6

An increase in sales volume is likely to produce a decrease in the inventory turnover rate.

Question 7

When determining Cost of Food Consumed, promotion expense, if any, is normally added to Cost of Food Issued.

Question 8

Average inventory is the sum of opening and closing inventory divided by 2.

Question 9

When taking a physical inventory, it is good practice to:

A) list the items alphabetically
B) list the items in the same order in which they are maintained in stock
C) list the items from highest price to lowest price.

Question 10

If the purchase prices of units in an inventory are marked on each unit, the most accurate method of determining the value of the closing inventory is:

A) latest purchase price
B) weighted average purchase price
C) actual purchase price.

Question 11

Employee meals are Cost of Food Issued to determine Cost of Food Consumed.

A) subtracted from
B) added to
C) either added to or subtracted from, depending on management's decision in a given establishment.

Question 12

The difference between Cost of Food Consumed and Cost of Food Sold is:

A) steward sales
B) transfers
C) employees' meals

Question 13

If average inventory is $12,000, food sales are $90,000, and cost of food sold is $36,000, then inventory turnover rate is:

A) 2.5
B) 3.0
C) 7.5

Question 14

If opening inventory is $7,000 and the closing inventory is $3,000, then average inventory is:

A) $4,000
B) $5,000
C) $10,000

Question 15

If food cost percent is 32.8%, then cost per dollar sale equals:

A) $.0328
B) $.328
C) $3.28

Question 16

If opening inventory is $4,000, cost of food sold is $20,000, and food sales are $80,000, then inventory turnover rate is:

A) 4.0
B) 5.0
C) The

Question 17

Overpurchasing and overproduction are likely to result in:

A) an increase in food cost percent
B) a decrease in inventory turnover rate
C) a decrease in food cost percent.

Question 18

Assuming no change in sales volume, reductions in quantities of stores purchased and smaller average inventory is likely to result in:

A) an increase in the inventory turnover rate
B) no change in the inventory turnover rate
C) a decrease in the inventory turnover rate.