Cycles of F&B Cost Control-Receiving

Question 1

10 cycles of food and beverage cost control:

Answer 1

1. Operation analysis
2. Menu planning
3. Purchasing
4. Receiving
5. Storing
6. Food Preparation
7. Service
8. Selling and Control of Cash
9. Sales Analysis
10. Start Again

Question 2

You make an overall analysis of everything you are doing in your total food service operation
 What are your sales?
 What is your current food cost?

Answer 2

Operation analysis

Question 3

It is your most important sales tools. It lists everything you will sell. You “pre-cost” your ——. This means that before you put any item and price on your ——, you figure out just what it costs you to prepare and serve that item.

Answer 3

Menu

Question 4

You have to purchase the food you will need to have in order to prepare and sell the items on your menu.

Answer 4

Purchasing

Question 5

As you ——the food you have purchased, some goes into your storeroom and some goes directly into your production area.

Answer 5

Receiving

Question 6

You need control procedures to check food in and out of your ——-. You need a —- control system to keep records and to prevent theft.

Answer 6

Storeroom

Question 7

Establish procedures. You need standardized recipes to prepare the food listed on your menu, to make sure your costs and portion sizes are being maintained in line with what you pre-costed, and to make sure that you predetermined standards are being met.

Answer 7

Food production

Question 8

Decide what kind of —- you want to offer. Train your employees to provide it.

Answer 8

Service

Question 9

Established controlled selling procedures. Control for collecting payment from guests and handling cash are very important.

Answer 9

Selling and control cash

Question 10

is a process involve the following sequence of operation

Answer 10

Procurement

Question 11

4 types of procurement:

Answer 11

Purchasing
Receiving
Storing
Issuing

Question 12

is a process of an activity that acquiring goods or service to accomplish the goals of an organization.

Answer 12

Purchasing

Question 13

ensuring that the quantity and price of each item ordered is what the establishment actually received

Answer 13

Receiving

Question 14

those food are added to inventory when received and charged to cost as issues.

Answer 14

Storing

Question 15

Process of placing products into a production system.

Answer 15

Issuing

Question 16

to ensure a continuing supply of sufficient quantities of the necessary foods, each of the quality appropriate to its intended use, purchased at the most favorable price.

Answer 16

Control over purchasing

Question 17

Standard must be developed for the following:

Answer 17

-quality of food purchased
-quantity of food purchased
-prices at which food is purchased

Question 18

Determine which food, both perishable and nonperishables will be required for day to day operation, Developing a complete list of foods and its characteristics

Answer 18

Establishing quality standard

Question 19

Although purchase specifications can be established at one particular time and merely reviewed and updated on occasion, ————– for purchasing are subject to continual review and revision, often on a daily basis.

Answer 19

establishing quantity standard

Question 20

Quality of purchasing raw materials must be follow to standard purchased specification

Answer 20

quality of food purchased

Question 21

Before purchased a
raw materials, purchasing agent
must always refer to PAR STOCK and Steward’s Market Quotations List.

Answer 21

quantity of food purchased

Question 22

—— offer must be same as quotations, so before purchased raw materials, purchasing agent must request quotations. The quotations will
be send by supplier.

Answer 22

prices at which food is purchased

Question 23

9 Document in purchasing

Answer 23

1. Request for price quotations (RFQ)
2. Steward’s market quotation list
3. Market quotations sheet
4. Purchase order
5. Bin card
6. Perpetual inventory card
7. Standard purchase specifications
8. Contract of purchasing
9. Schedule agreement of purchasing

Question 24

A standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services.

Answer 24

Request for price quotations

Question 25

A **form used by food purchasers** for taking daily of perishable foods, determining suitable order quantities, recording market quotations and selecting vendors.

Answer 25

Steward’s market quotation list

Question 26

A **sheet, that quote the last price** at which an asset was traded in a securities market. The quote will usually represent the current asking price of the security contract.

Answer 26

Market quotations sheet

Question 27

An **order** which includes **vendor’s price, products and agreed arrangement** for delivery and payment.

Answer 27

Purchase order

Question 28

A card, label or other device **affixed to a storage shelf,** used for **recording the number or units** of a particular item added to and issued from inventory and for determining the **inventory balance** that should be found on the shelf.

Answer 28

Bin card

Question 29

A card or other device used in the -------- inventory method for **recording additions to** and issues from inventory.

Answer 29

perpetual inventory card

Question 30

Carefully **written descriptions** listing in appropriate details the specific and distinctive characteristics that best describe an item to be purchased.

Answer 30

standard purchase specifications

Question 31

A **legally binding document** agreed between a purchaser and a vendor. A purchasing ------- defines the purchasing and supply of goods or services at **agreed prices and conditions.** The quantity and value of the purchase order, limit confirmations and invoices are released against the ------------.

Answer 31

contract of purchasing

Question 32

A form of **outline purchase agreement** under which materials are procured on predetermined dates within a **certain time period**

Answer 32

schedule agreement of purchasing

Question 33

8 purchasing techniques

Answer 33

Centralized purchasing standing order **sealed bid** **cost plus** one stop shopping blank cheque open market quotation government acceptance

Question 34

is a system used by **chains, franchises** and groups of **independent operators** that results in purchases for all participating units being made by central office.

Answer 34

Centralized purchasing

Question 35

is referring to **arrangements made between purveyors** and foodservice operators that result in **regular delivery of goods** without specific orders preceding each delivery.

Answer 35

Standing order method

Question 36

mostly used by **government institutions,** which usually are **obligated by government procedures** to take the **lowest price** offered and contract period for 30,60 or 90 days.

Answer 36

Sealed bids

Question 37

is where management set **high standards for the products.** Purveyors must meet these standards purveyors charges you what they pay for the item plus and agreed upon handling charges.

Answer 37

Cost plus order

Question 38

method of **purchasing advocated by purveyors.** Give all of your business to a **single purveying company** which can give lower prices because they are receiving larger orders.

Answer 38

One stop shopping

Question 39

technique are where you need a **commodity** but you do not know the exact cost so you **send a signed cheque** to the supplier for the item and the supplier fills in the amount of money.

Answer 39

Blank cheque ordering

Question 40

is a purchasing technique where an establishment **sends out** its **specifications to a variety of companies** that supply the items needed.

Answer 40

Open Market Quotation

Question 41

is an excellent method for **purchasing meat for a nominal fee,** government inspectors working for the **Department of Agriculture** at a purveyor or at a meat plant will see to it that your specifications of grade and quality of produce are met.

Answer 41

Government Acceptance

Question 42

Typically **fresh food.** It have comparatively **short useful life** after they have been received. Begin to **lose their quality very quickly.**

Answer 42

Perishable foods

Question 43

Item have **longer shelf life.** Frequently refer to groceries or staples. May be store in the **packages or containers** in which they received.

Answer 43

Non- perishable foods

Question 44

Two types of receiving:

Answer 44

Acceptance hour Refusal hour

Question 45

**Deliveries** be made only at **certain time**

Answer 45

acceptance hour

Question 46

The time that operator will **not accept deliveries**

Answer 46

refusal hour

Question 47

3 ESTABLISHING **STANDARD OF RECEIVING**

Answer 47

❑ The **quality delivered** should be the same as the quantity listed on the Steward’s Market Quotation List and the invoice. ❑ The **quality delivered** should **conform** to the establishment’s specifications. ❑ The **prices on the invoice** should **match** those **circled** on the Steward’s Market Quotation List.

Question 48

2 DOCUMENTS IN RECEIVING

Answer 48

Invoices Receiving clerk's daily report

Question 49

is a **bill from a vendor** for goods or services. Often presented as the **goods deliveries or the service are performed.**

Answer 49

invoices

Question 50

A general tern used to identify those **forms used in F&B operations** to **record data from invoices** for goods received on a given day and for accounting purposes, to distribute purchases into appropriate categories.

Answer 50

receiving clerk's daily report

Question 51

* Sometimes refer to simply as a **receiving report or receiving sheet.**

Answer 51

RECEIVING CLERK’S DAILY REPORT

Question 52

RECEIVING CLERK’S DAILY REPORT is divided into:

Answer 52

directs stores

Question 53

For **immediate use.** Considered to be **issued on delivery.** Go directly onto today’s food cost

Answer 53

Directs

Question 54

**Not for immediate use.** **Included on food cost** when they are issued

Answer 54

Stores

Question 55

is the amount of time a **food item retains** its maximum **freshness, flavor,** and quality while in storage.

Answer 55

Shelf life

Question 56

7 inventory control

Answer 56

Storage capacity Item perishability Vendor delivery schedule **POTENTIAL** savings from increased purchase **Operating calendar** Relative importance of stock inventory dollars to the operators

Question 57

5 RECEIVING PROCEDURE

Answer 57

- Verify the quality, quantity and price for each item **CONFORMS EXACTLY** to the order placed - Verify invoice with rubber invoice stamp - List foods delivered **each day** on the receiving Clerk’s Daily Report for **that day** - Forward paperwork to proper personnel - Move food to appropriate **STORAGE AREAS**