When do customers using an open tab pay for their drinks?

after ordering and consuming drinks

In the "as-purchased" (AP) method, the cost if the ingredients is determined

prior to any trim or waste being taken into account.

When preparing a pro forma income statement, the manager is

estimating what is expected to happen in the future.

The one-stop shop method of purchasing is best described as

buying most ingredients from one supplier.

The formula for calculating the cost of food sold is

(Opening Inventory + Purchases) - Closing inventory

The first step in forecasting labor usage for scheduling is:

Projecting sales based on historical data for a given time

A major cost of increased food costs in food service operations is

staff not adhering to standardized recipes

The best method for ensuring that employees use portion control is by

checking portion sizes on a regular basis

When determining a fair value for their dining experience, which factors do guests consider?

Service, ambiance, pricing, and reputation

Analysis shows that composite FC% is 34% and the standard FC% is 30%:Do which corrective action

Adjust prices upward until the composite food cost is 30%

Portion size of "Possum-tail" is 8 oz. EP cost is $0.45/oz. Crew portioned @11 oz. Sell 60/wk.

Food cost exceeded the standard by $81

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Cost Control Fall-2015 NRA Review

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Study guide for the NRA Cost Control Exam-2015

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Questions 82

Answers

1
Lasagna is 15% of dinner sales. How many portions are forecast to be sold if 600 are expected?
40
90
60
51
2
Chef discovers the Veloute is very sweet and does not meet the restaurant standard. The sauce
sold upon request
should be used anyway
discarded
used after adding salt
3
Sales history expects 300 meals. History: Turkey Necks,35%; Pig Tails,45%. # of tails today?
45
135
105
67
4
When a restaurant wants to borrow money from a bank, and important consideration banks use is
inventory turnover
menu offerings
food cost percentage
gross profit
5
When do customers using an open tab pay for their drinks?
Before receiving their drinks
after ordering and consuming drinks
after receiving a bill in the mail the next day
At the time each drink is served
6
The most common method of rotating stock in which the oldest items in inventory are used first
first in, last out (FILO)
first find, first out (FFFO)
first in, first out (FIFO)
last in, first out (LIFO)
7
If the Armadillo Dinner sells for $18 and the food cost is $4.50, the food cost percentage is
20
25
40
30
8
How a menu item appears when served to a guest, including portion size and serving details is
plate presentation
product placement
serving size
servicing
9
Hist. info: Grilled Yak accounted for 26%; Poached Eel-22%; Fried Flies-20%. Eel if 425 people?
51
68
128
94
10
In the "as-purchased" (AP) method, the cost if the ingredients is determined
by descending order of quantities used.
in the order of protein first, then starch, and then spices.
prior to any trim or waste being taken into account.
in order of the cost of each separate food item.
11
An insurance expense of $2,375 per month is an example of which type of cost?
Semivariable
Variable
Noncontrollable
Controllable
12
Food Cost is which of the following?
Semi-Variable Cost
Uncontrollable Cost
Fixed Cost
Controllable Cost
13
Making future predictions about the budget based on current situations and trends is called
investing
utilization factoring
flexible budgeting
forecasting
14
Production calls for 48 por. of Barnacle Claws. The recipe is for 20 por. Conversion factor is
0.42
0.24
4.2
2.4
15
What type of inventory is: counting the actual number of cans on the shelf, to compute value?
Padding
Perpetual
Physical
Averaging
16
When preparing a pro forma income statement, the manager is
listing the assets and liabilities of the operation.
preparing a more formal-looking income statement.
estimating what is expected to happen in the future.
calculating what the income statement was for last month.
17
The scoop size used to serve a 1/2 Cup of "Gobble-D-Goo" would be number
4
8
12
16
18
Increasing labor cost affects the opportunity for profit. However Chef Wolf should get a raise
he will help me with math or anything else whenever I need!!
All of the above!!
Because he wrote this awesome NRA review
so he can buy me a Christmas present!!!!!!
19
Menu Items with a low popularity and high contribution margin are known as
puzzles
plowhorses
dogs
stars
20
If the "AP" price of a 25# roast is $125 & there is a 20% shrinkage. The "EP" price per pound =
$2.50
$25.00
$15.63
$6.25
21
Meat specifications are found in the
American Culinary Guide
Meat Yield Guide
Food Manufacturers Guide
Meat Buyer's Guide
22
The one-stop shop method of purchasing is best described as
shopping at the local grocery store.
using par stock as a guideline.
buying most ingredients from one supplier.
buying from suppliers only once per week.
23
Which schedule acts as a template for listing the # of people needed in each position to run?
Labor
Service
Crew
Master
24
Weekly waste report-Items discarded because: burnt, not rotated, made incorrectly. Correct how
Fire the kitchen staff
Increase training
Recheck the food production chart
Remove those items from the menu
25
Which item is part of a food specification?
Cooking directions
Par Stock
Size of pack
Cost of product
26
The formula for calculating the cost of food sold is
(Opening Inventory + Purchases) - Closing inventory
(Purchases + Food waste) - Closing inventory
(Opening inventory + Closing inventory) - Purchases
(Purchases + Closing inventory) - Opening inventory
27
Intentional deception to cause a person to give up property or a lawful right is known as
fraud
dishonesty
shoplifting
trickery
28
A buyer has 4 suppliers give their best price. Which purchasing method is being used?
Competitive quotes
Commissary
Standing order
Cost-plus
29
Information for a short-term budget comes from which type of budget?
Capital expenditure
Flexible
Operating
Fixed
30
Industry standards recommend that management salaries should not exceed which % of revenue?
20
15
10
25
31
Funds from guest credit card payments are sent to which type of account?
Merchant
Security
Savings
Bank
32
Manager has set a par stock level of 20 cs. Buyer does inventory and counts 5 cs. Order # of cs
10
25
15
20
33
The first step in forecasting labor usage for scheduling is:
Projecting sales based on historical data for a given time
Planning the number of labor hours needed in service areas
Create a crew schedule for variable-cost employees
Calculating labor costs for a given period of time
34
Chef has the crew weigh 25 six oz. servings of beef, put in a bag, and in the cooler. This is
point-of-service control item
recipe conversion
overused product
pre-portioned item
35
The amount of money a business owes to suppliers of goods products, and services is called
revenue
bills
expenses
accounts payable
36
The cook does not know how to cook tonight's special. The cook should consult the
purchase order
vendor
waitstaff
standardized recipe
37
Ladles, a 6-oz ramekin, a scale that weighs 1 oz to 32 oz, in 1/2 oz increments are examples of
items made of ceramic
tools that every kitchen just have to function
kitchen tools used in preparing roast beef dishes
portion-control devices
38
Competitive pricing is common in which section of the restaurant and foodservice industry?
Casual service
Fine dining
Quick service
Full service
39
A tool used to calculate standard portion cost for a particular menu item is a(n)
standardized recipe
invoiced cost
recipe cost card
end-of-period inventory
40
A major cost of increased food costs in food service operations is
guests ordering too much food
guests changing their mind after ordering
the use of competitive quotes in purchasing
staff not adhering to standardized recipes
41
Into which category would the total cost of employees' salaries be placed?
Food
Other
Payroll
Wages
42
The best method for ensuring that employees use portion control is by
increasing the length of portion-control training to 3 weeks
giving employees a training manual showing portion sizes
checking portion sizes on a regular basis
conducting a 5-hour orientation session on portion control
43
The difference between an item's selling price and its food cost is the item's
shrinkage percentage
menu product mix
markup differentiation
contribution margin
44
Fixed and variable wages, employee benefits, FICA, and Medicare are considered
payroll costs
total cost of operations
labor costs
variable costs
45
May Open inventory=$7,000; close inventory=$9,000; cost of food=$40,000; Inv. Turnover Rate is
3
5
6
4
46
Checking the delivery quantity against both the invoice and the purchase order is an example of
a wasteful accounting practice
good receiving procedure
a vendor selection process
a monthly inventory
47
When determining a fair value for their dining experience, which factors do guests consider?
Ambiance only.
Service, ambiance, pricing, and reputation
Pricing only.
Style of service.
48
Analysis shows that composite FC% is 34% and the standard FC% is 30%:Do which corrective action
Adjust prices downward until the composite food cost is 30%
Adjust prices upward until the composite food cost is 30%
Split the difference, adjust prices to a composite of 32%
Change the standard FC to equal the composite food cost
49
Plan that shows how manager expect to obtain and utilize resources to support operational goals
cost analysis
forecast
variance report
budget
50
Portion size of "Possum-tail" is 8 oz. EP cost is $0.45/oz. Crew portioned @11 oz. Sell 60/wk.
Food cost exceeded the standard by $135
Food cost exceeded the standard by $18
Food cost exceeded the standard by $27
Food cost exceeded the standard by $81
51
Food and Labor are examples of which type of cost?
Prime
Revenue
Occupational
Direct
52
If food cost is $14,000, opening inventory is $3,500, and sales are $47,000; the food cost % is
30
40
34
25
53
The formula to calculate labor cost percentage is:
Labor cost divided by Sales
Sales divided by Payroll cost
Sales divided by Labor cost
Payroll cost divided by Sales
54
Recipe: 20# of Elephant, 1# of kale chips, 25 Tbl of salt, 1C. of olives. Conversion factor 0.7
13# of Elephant
27# of Elephant
14# of Elephant
20.7# of Elephant
55
Recipe calls for 12 oz. of sugar. Sugar AP cost is $60/50# bag. What is cost of sugar in recipe
$1.20
$0.75
$0.60
$0.90
56
Buffalo Lips account for 35% of sales. 300 people are expected. How many lip portions to prep?
116
11
105
86
57
Labor available=$27,000. Benefits=$2,900. Manager's salary=$4,400. $ avail. for variable labor:
$19,700
$24,100
$29,900
$25,500
58
How is contribution margin calculated?
Subtract the cost of making a menu item from the menu price
Multiply the factor times the menu item cost
Subtract the menu price from the cost of making the item
Add the standard food cost % to the markup
59
A report detailing an operation's sales, expenses, and profits or losses for a period of time.
Variance Report
Income Statement
Pro-forma Statement
Budget Analysis
60
A financial examination of an organizations's accounts is called a(n)
financial test.
audit.
inquisition.
internal review.
61
Document listing: names of products to be purchased, price, delivery date, supplier, & signed
specification
standing order
requisition
purchase order
62
If a cost is $2,000 when sales are $10,000 and $4,000 when sales are $20,000, this cost is?
fixed
gross
semivariable
variable
63
Cafe has a standard FC of 33%, and a composite FC of 33%. Actual FC% for May was 39%. Do what?
Immediately lower prices to bring margins in line
Recalculate the composite food cost to equal 39%
Look for operational problems that are causing the variance
Immediately raise prices to bring margins in line
64
Perishable goods are best described as products that have a(n)
indefinite shelf life
higher edible portion
relatively short shelf life
lower edible portion
65
Hourly, daily, and weekly revenue figures can be generated by which type of system?
Purchase control
Inventory control
Labor management
Point-of-sale
66
Weekly payroll available=$9,500. Fixed payroll=$3,700. Server payroll=$1,000. Ave $12/hr. # hrs
600
500
300
400
67
Server productivity:Bill-10hr./$1000 sales; Joe-12hr./$1800 sales; Sue-15hr./$2000; Bo-2hr/$280
Bo
Bill
Sue
Joe
68
How many servers should be scheduled?- "covers per server" standard is 40/hr. -480 guests/4 hrs
5
3
4
2
69
Food, beverage, and labor costs combined are known as
prime cost
gross profit
major costs
contribution margin
70
Controlled access to storeroom areas and keeping high-value items locked up are examples of
standardized inventory methods.
the issuing inventory method.
good inventory security.
minimizing inventory levels.
71
If the cost of zebra increases, one method to keep the food cost % of zebra entrees the same is
decrease the price.
increase the portion size.
take it off the menu.
increase the price.
72
Which cost category would the employer's share of the premium for health insurance be placed?
Payroll
Food
Labor
Other
73
Payments by credit card: compare the signatures on the card and receipt, verify expire date &
give the customer cash back.
ask for two more photo ID's.
ask the customer what the card's limit is.
input the CVV number.
74
How frequently should cost control be implemented to be effective?
Quarterly
Ongoing
Once
Annually
75
Manager needs to extend the cost of inventory. 6 tomatoes @ $25, 4 peas @ $35, 1/2 oat @ $60
$120
$320
$260
$350
76
A proper revenue collection system involves charging the guest, collecting revenue, and
making sure the guest received a good value
billing the guest
protecting the operation's cash assets
securing payment
77
Which kind of inventory uses a theoretical count based on goods received and issued?
Estimation
Physical
Actual
Perpetual
78
The primary control tool for managing labor costs is
fixed labor costs.
return charts.
employee turnover.
the schedule.
79
Which forecasting method adds the expected growth rate to last year's expenses?
Growth
Percentage of sales
Levinson
Simple markup
80
A primary indicator of a manager's effectiveness in meeting operational & financial standards:
a forecast
prime profit
controllable profit
a budget
81
A common tool used for portion control of cottage cheese and ice cream is a
slotted serving spoon
scoop
portion control scale
point-of-sale (POS) system
82
All orders coming out of the kitchen should have a
handwritten order on plain notepad paper.
verbal order from the server.
point-of-sale (POS) system entry or written guest check.
signed invoice from the guest.

Cost Control Fall-2015 NRA Review Flashcards | StudBud