CCA Cost Control & Purchasing Flashcards
6 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCA Cost Control & Purchasing flashcards as text
What is the break-even point for a food service operation?
Answer: The level of sales at which total revenue equals total costs, resulting in neither profit nor loss
The break-even point is when total revenue equals total costs (fixed + variable), meaning the operation covers all expenses but generates no profit.
What is prime cost in a restaurant?
Answer: The combined total of food cost and labor cost
Prime cost is the sum of food and beverage cost plus total labor cost (including wages, benefits, and payroll taxes), typically the two largest controllable expenses in a restaurant.
What is the purpose of a standardized recipe in cost control?
Answer: To ensure consistent quality and portioning, enabling accurate costing and predictable food cost percentages
Standardized recipes ensure consistent yield, portion size, and quality, which are essential for accurately calculating food cost and maintaining predictable food cost percentages.
Which pricing method calculates menu price by multiplying food cost by a factor derived from the desired food cost percentage?
Answer: Factor pricing method
The factor pricing method multiplies the plate cost by a pricing factor (100 ÷ desired food cost %) to arrive at the menu price, ensuring the desired food cost percentage is achieved.
What is 'shrinkage' in the context of meat purchasing and cost control?
Answer: The loss of weight and volume that occurs when meat is cooked due to moisture and fat loss
Shrinkage refers to the weight loss that occurs when meat is cooked, as moisture evaporates and fat renders out, which must be accounted for when calculating portion costs.
What is the contribution margin of a menu item?
Answer: The selling price minus the food cost of the item
The contribution margin is the selling price minus the variable food cost, representing how much each sale of that item contributes toward covering fixed costs and profit.