CCA CCA Cost Control & Food Costing 1 — Questions and Answers
Question 1: Which formula correctly calculates food cost percentage?
- (Menu Price ÷ Food Cost) × 100
- (Food Cost ÷ Total Food Revenue) × 100 (Correct answer)
- (Total Food Revenue ÷ Food Cost) × 100
- (Food Cost ÷ Labor Cost) × 100
Correct answer: (Food Cost ÷ Total Food Revenue) × 100
Food cost percentage is calculated by dividing the cost of food sold by total food revenue and multiplying by 100.
Question 2: What is 'yield percentage' in food costing?
- The percentage of food wasted during preparation
- The ratio of edible portion weight to as-purchased weight expressed as a percentage (Correct answer)
- The percentage of a menu item's selling price that represents profit
- The percentage of daily production that meets quality standards
Correct answer: The ratio of edible portion weight to as-purchased weight expressed as a percentage
Yield percentage is calculated by dividing the edible portion (EP) weight by the as-purchased (AP) weight and multiplying by 100.
Question 3: A restaurant purchases a 10-lb beef tenderloin for $15/lb. After trimming, the edible yield is 7.5 lbs. What is the cost per edible pound?
- $15.00
- $17.50
- $20.00 (Correct answer)
- $22.50
Correct answer: $20.00
Divide total purchase cost ($150) by the edible yield (7.5 lbs) to get the true cost per edible pound: $150 ÷ 7.5 = $20.00.
Question 4: What is the primary purpose of a standardized recipe in a foodservice operation?
- To impress health inspectors with documented procedures
- To ensure consistent quality, quantity, and cost for every production run (Correct answer)
- To satisfy customer requests for recipe information
- To track employee performance during food preparation
Correct answer: To ensure consistent quality, quantity, and cost for every production run
Standardized recipes ensure that every time a dish is prepared it produces the same quality, quantity, and cost, making food cost control predictable.
Question 5: Which of the following is included in 'prime cost' for a foodservice operation?
- Food cost + beverage cost only
- Food cost + total labor cost including benefits (Correct answer)
- All fixed costs including rent and utilities
- Food cost + equipment depreciation
Correct answer: Food cost + total labor cost including benefits
Prime cost is the sum of total food and beverage costs plus total labor costs including wages, salaries, and benefits—typically the two largest controllable expenses.
Question 6: What does a food cost variance report compare?
- This week's sales to last week's sales
- Theoretical (ideal) food cost to actual food cost (Correct answer)
- Kitchen labor hours to total hours scheduled
- Menu prices to competitor pricing
Correct answer: Theoretical (ideal) food cost to actual food cost
A food cost variance report compares the theoretical food cost—what costs should be based on standardized recipes—to the actual food cost incurred.
Question 7: A menu item has a selling price of $18 and a food cost of $5.40. What is the contribution margin?
- $5.40
- $12.60 (Correct answer)
- $18.00
- $3.33
Correct answer: $12.60
Contribution margin = Selling Price − Food Cost = $18.00 − $5.40 = $12.60, representing what remains to cover other costs and profit.
CCA CCA Cost Control & Food Costing 1
Which formula correctly calculates food cost percentage?