Deck 16: Monitoring Beverage Operations

Question 1

Inventory differential is the difference between opening and closing storeroom inventory values.

Answer 1

False

Question 2

A negative inventory differential increases cost of beverages sold.

Answer 2

True

Question 3

Transfers from the bar to the kitchen are added to beverage cost.

Answer 3

False

Question 4

Inventory turnover is the ratio of average inventory to cost of beverages sold.

Question 5

In general, an inventory turnover rate of 2.0 is acceptable for beers.

Question 6

The potential sales value calculated for a bottle of spirits is based on the sale of bottle contents as straight drinks.

Question 7

The mixed drink differential is a calculation of the percentage of the sales mix represented by mixed drinks.

Question 8

In the drink consisting of 2 ounces of gin and 6 ounces of tonic, the primary ingredient is tonic.

Question 9

The principal advantage to the monthly cost percent method for monitoring beverage operations is its unique ability to uncover deviations from standards and standard procedures at a front bar.

Question 10

The average sales value method for monitoring beverage operations eliminates the need for determining mixed drink differentials daily.

Question 11

If a liter of scotch costs $10.14, and standard 2-ounce shots sell for $2.00, the potential sales value of the liter of scotch is:

A) $20.28
B) $33.80
C) The answer cannot be determined from the information given.

Question 12

Given beverage sales of $1,200. and cost of beverages sold of $300., beverage cost percent is:

A) 40.0%
B) 36.0%
C) 25.0%.

Question 13

Given opening inventory of $6,000., closing inventory of $7,000., and purchases of $12,000., cost of beverages issued is:

A) $11,000.
B) $13,000.
C) $25,000.

Question 14

Given opening storeroom inventory of $6,000., opening bar inventory of $3,000., closing storeroom inventory of $7,000., closing bar inventory of $4,000., and purchases of $12,000, cost of beverages sold is:

A) $10,000.
B) $11,000.
C) $12,000.

Question 15

Given opening storeroom inventory of $8,000., opening bar inventory of $2,000., closing storeroom inventory of $7,000., closing bar inventory of $3,000., purchases of $20,000, and sales of $80,000, inventory turnover is:

A) 8.0
B) 4.0
C) 2.0.

Question 16

Given the following information, what is the mixed drink differential for a gin martini?
One ounce of gin sells for $1.00;
Gin martinis contain 2 ounces of gin;
Gin martinis sell for $2.50.

A) + $ .50
B) + $1.50
C) + $2.00.

Question 17

Compute the deviation from potential given the following information developed during a suitable test period:
-actual sales for the period = $4,500.
-potential sales based on straight shots = $5,000.

A) 11.1%
B) 10.0%
C) The answer cannot be determined from the information given.

Question 18

Snibley's Restaurant uses the standard deviation method to monitor bar operations. In the test period, actual sales were $9,400, and potential sales based on straight shots were $10,000. What should actual sales have been for last week if potential sales based on straight shots were $15,000.?

A) $14,043.
B) $14,100.
C) $14,400.

Question 19

Given the following information, compute the daily beverage cost percent for Sniffley's Restaurant:
Beverage issues = $2,500.
Transfers from kitchen to bar = $210.
Transfers from bar to kitchen = $110.
Promotion expense = $80.
Beverage sales = $12,000.

A) 20.7%
B) 20.8%
C) 21.0%.

Question 20

Given the following information, compute the daily beverage cost percent for Wormley's Restaurant:
Opening bar inventory = $2,000.
Closing storeroom inventory = $7,000.
Transfers from kitchen to bar = $400.
Promotion expense = $100.
Closing bar inventory = $1,800.
Beverage purchases = $14,000.
Transfers from bar to kitchen = $300.
Beverage sales = $60,000.

A) 23.7%
B) 12.0%
C) The answer cannot be determined from the given