Cost Control Flashcards

A restaurant's beverage sales are $12,000 and beverage cost is $3,600. What is the beverage cost percentage?

Answer: 30%

Beverage cost % = ($3,600 ÷ $12,000) × 100 = 30%.

Which of the following scenarios represents an INDIRECT cost in foodservice operations?

Answer: Utilities shared across the entire facility

Indirect costs like shared utilities cannot be directly traced to a single menu item or event and must be allocated.

What is the primary advantage of using a weighted average cost method for inventory valuation?

Answer: It smooths out price fluctuations by averaging all purchase costs

Weighted average cost averages all purchase prices together, reducing the impact of price swings on reported cost of goods sold.

A hotel banquet serves 200 guests at a guaranteed minimum of 180. Food is prepared for 200. What is this guaranteed minimum called?

Answer: Attendance guarantee

An attendance guarantee is the minimum number of guests the client commits to paying for, regardless of actual attendance.

Which of the following describes the 'minimum-maximum' inventory control system?

Answer: Defining both a reorder point (minimum) and the maximum quantity to have on hand

The min-max system sets a reorder trigger (minimum) and a ceiling quantity (maximum) to prevent both stockouts and over-purchasing.

A cook uses 5 oz of protein per portion instead of the standardized 4 oz. If 80 portions are served at a protein cost of $0.50/oz, what is the total over-portioning cost?

Answer: $40

Extra oz per portion = 1 oz; total extra oz = 80 × 1 = 80 oz; cost = 80 × $0.50 = $40.

In foodservice cost control, what does 'theoretical food cost' represent?

Answer: The cost that should have been incurred based on standardized recipes and sales mix

Theoretical food cost is what costs should be if every item were prepared and sold exactly according to standardized recipes with no waste or theft.