Chapter 4

Question 1

What is a subjective decision made by the purchased that weighs the price paid in relation to the quality of the product?

Answer 1

Value

Question 2

Lowest price you can sell goods for while still making money is the

Minimum Selling Price =
(Raw food cost per serving + Labor cost per serving) / (Food Cost percentage + Labor cost percentage)

Answer 2

Minimum selling price

Question 3

Highest price you can set on goods/services, that people will still pay for is the

Answer 3

Maximum selling price

Question 4

The total use of food cost divided by net sales is the

Answer 4

Food Cost percentage

Question 5

.

Answer 5

Food Cost Percentage Factor

Question 6

A cost that does not change with an increase or decrease in the amount of goods or services produced is the

Answer 6

Fixed costs

Question 7

A cost of labor, material or overhead that changes according to the change in the volume of production units.

Answer 7

Variable costs

Question 8

What is the point in time (or in number of units sold) when forecasted revenue exactly equals the estimated total costs; where loss ends and profit begins to accumulate?

Answer 8

Break even point

Question 9

What is the way in which an organization is financed?

Answer 9

Financial structure of the organization

Question 10

Factor Method and Prime cost method are the two

Answer 10

Methods of setting minimum selling price

Question 11

.

Answer 11

Factor Method

Question 12

.

Answer 12

Prime cost method