Kitchen Financial Management Flashcards

Why should a chef take physical inventory at the same time each period, such as the last day of the month?

Answer: Consistent timing makes cost comparisons between periods accurate

Counting at consistent intervals ensures food cost calculations compare like periods and reveal true trends.

A vendor offers a 2% discount for payment within 10 days on a $5,000 invoice otherwise due in 30 days. How much is saved by paying early?

Answer: $100

The early-payment discount is 2% of $5,000, which equals $100.

In a declining sales period, which cost-control move carries the greatest risk of hurting long-term revenue?

Answer: Reducing portion quality with cheaper substitute ingredients

Cutting ingredient quality erodes guest satisfaction and repeat business, damaging revenue beyond the short term.

A recipe yields 40 portions at a total ingredient cost of $130. If the chef needs 100 portions, what is the projected ingredient cost?

Answer: $325

Cost per portion is $3.25 ($130 ÷ 40), so 100 portions cost $3.25 × 100 = $325.

Which report gives a chef the earliest warning that daily food costs are drifting off target?

Answer: A daily flash food cost report comparing purchases and sales

A daily flash report tracks food cost against sales in near real time, allowing immediate corrective action.

Overtime pay at time-and-a-half for a cook earning $18 per hour who works 6 overtime hours adds how much to labor cost?

Answer: $162

Overtime rate is $27 per hour ($18 × 1.5), so 6 hours costs $27 × 6 = $162.

A restaurant's beverage sales are $20,000 with beverage costs of $4,400. If the target beverage cost is 20%, how does actual performance compare?

Answer: Actual cost is 22%, running 2 points over target

Actual beverage cost is $4,400 ÷ $20,000 = 22%, which is 2 percentage points above the 20% target.