CCA Cost Control & Food Costing Flashcards

Which formula correctly calculates food cost percentage?

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.

What is 'yield percentage' in food costing?

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.

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?

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.

What is the primary purpose of a standardized recipe in a foodservice operation?

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.

Which of the following is included in 'prime cost' for a foodservice operation?

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.

What does a food cost variance report compare?

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.

A menu item has a selling price of $18 and a food cost of $5.40. What is the contribution margin?

Answer: $12.60

Contribution margin = Selling Price − Food Cost = $18.00 − $5.40 = $12.60, representing what remains to cover other costs and profit.