Deck 6: Purchasing and Receiving Controls

Question 1

Which of the following terms describes a series of records, documents, or reports that trace the flow of resources through an operation?

A) purchase specification
B) audit trail
C) delivery invoice
D) inventory checklist

Answer 1

B

Question 2

In relation to the purchasing function, the term quality refers to:

A) highest price.
B) popularity of a menu item.
C) suitability for intended use.
D) standardized inspection grades.

Answer 2

C

Question 3

Which of the following types of purchasing­related theft is characterized by a supplier trying to submit an invoice for payment more than once?

A) nonexistent company fraud
B) reprocessing scheme
C) quality substitution theft
D) none of the above

Answer 3

B

Question 4

The manager of a new 120­seat independent restaurant will start operations with an inexperienced chef and kitchen staff. Which of the following supplier selection criteria would the manager likely rank as most important?

A) location of supplier
B) quality of the supplier's operation
C) the supplier's prices
D) technical ability of the supplier's staff

Question 5

A restaurant wastes $600 each month because of poor purchasing practices. If the operation's budget targets a profit of 15 percent of revenues, how much additional revenue must be generated by year's end to recoup the $600 of wasted resources each month?

A) $4,000
B) $24,000
C) $48,000
D) $52,000

Question 6

With the minimum/maximum ordering system, the maximum number of purchase units permitted in storage is determined by the:

A) usage rate plus the minimum level.
B) usage rate plus the lead­time quantity.
C) lead­time quantity plus the safety level.
D) lead­time quantity minus the safety level.

Question 7

A stockout can occur as a result of:

A) employing a perpetual inventory system.
B) overpurchasing.
C) inadequate menu engineering.
D) underpurchasing.

Question 8

Ownership of product is transferred from the supplier to the food and beverage operation when the receiving employee signs the:

A) delivery invoice.
B) daily receiving report.
C) purchase order.
D) standard purchase specification sheet.

Question 9

Which of the following best characterizes the purchasing function of franchisees of a multi­unit food and beverage company?

A) Franchisees may purchase products such as fresh produce and bakery items locally, but must buy all other items from the franchisor company.
B) Franchisees are required to purchase all products­ regardless of type­from their franchisors.
C) Franchisees are not required to purchase products from specific sources such as company commissaries, but they are required by franchisors to adhere to company­ developed specifications in products purchased from any supplier.
D) Franchisees are permitted to purchase both food and nonfood products for their operation from any supplier without restriction.

Question 10

In relation to the food service purchasing cycle, which of the following positions is generally responsible for completing an issue requisition when items are needed in food production areas?

A) chef
B) purchasing agent
C) receiving agent
D) storeroom clerk