Question 1

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?

Accepted Answer

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

Question 2

What do managers measure when they calculate a productivity ratio?

Accepted Answer

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

Question 3

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?

Accepted Answer

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

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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?

Accepted Answer

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

Question 6

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?

Accepted Answer

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

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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 12

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?

Accepted Answer

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

Question 13

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

Accepted Answer

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

Exam 7: Managing the Cost of Labor

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?

What do managers measure when they calculate a productivity ratio?

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?

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

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?

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?

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

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

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

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

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

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?

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