Kitchen Financial Management Flashcards
7 cards from real CCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Kitchen Financial Management flashcards as text
A restaurant's beginning inventory is $8,000, purchases are $22,000, and ending inventory is $6,000. What is the cost of goods sold?
Answer: $24,000
COGS = beginning inventory + purchases - ending inventory, so $8,000 + $22,000 - $6,000 = $24,000.
A menu item has a food cost of $4.50 and the target food cost percentage is 30%. What should the menu price be?
Answer: $15.00
Menu price = food cost divided by target percentage, so $4.50 ÷ 0.30 = $15.00.
Which of the following is considered a fixed cost in kitchen operations?
Answer: Rent for the restaurant space
Rent stays constant regardless of sales volume, making it a fixed cost.
A whole beef tenderloin costs $88 and yields 8 pounds of usable portions after trimming from an 11-pound purchase weight. What is the cost per usable pound?
Answer: $11.00
Cost per usable pound = total cost ÷ usable yield, so $88 ÷ 8 lb = $11.00.
What does a prime cost of 62% indicate for a restaurant?
Answer: Combined food and labor costs equal 62% of sales
Prime cost is the sum of cost of goods sold and total labor cost expressed as a percentage of sales.
A kitchen's actual food cost is 34% but the theoretical food cost is 29%. What is the most likely explanation for the variance?
Answer: Waste, over-portioning, or theft
A gap between actual and theoretical food cost typically points to shrinkage such as waste, over-portioning, spoilage, or theft.
Which inventory valuation method assumes the oldest stock is used first, matching standard kitchen rotation practice?
Answer: FIFO
FIFO (first-in, first-out) values inventory as if the oldest items are consumed first, mirroring proper stock rotation.