Htm 2030 Midterm 1

Question 1

What are the biggest challenges for foodservice operators?

Answer 1

Labour Costs

Question 2

3 areas for the income statement

Answer 2

1. Controlling earnings
2. Controlling food and beverage expenses
3. Controlling labour expenses

Question 3

Controllable costs

Answer 3

Any costs that can be changed in the short-term of operations

Question 4

Uncontrollable costs

Answer 4

Costs that cannot normally be changed in the short-term run of operations

Question 5

2 types of planning purposes

Answer 5

1. Historical costs
2. Planned costs

Question 6

Historical costs

Answer 6

records of past operational results; valuable for planning

Question 7

Planned costs

Answer 7

International goals for what might happen in the future; forecast prime costs

Question 8

Prime costs

Answer 8

The costs of goods sold and labour incurred in a period of time

Question 9

Cost % =

Answer 9

Cost $ / Sales $

Question 10

4 control techniques

Answer 10

1. Establish standards and procedures
2. Train personnel
3. Monitor performance and compare actual outcomes against plans
4. Take appropriate actions to correct for unwanted deviations

Question 11

Static budget

Answer 11

A single budget prepared for one level of business actitivity

Question 12

Flexible

Answer 12

Multiple budget prepared for various levels of business

Question 13

To create a budget, you require two items:

Answer 13

1. Historical financial records
2. Anticipated changes in sales and costs

Question 14

Sales (simple)=

Answer 14

Variable costs + Contribution Margin

Question 15

Variable Rate =

Answer 15

Variable costs / Sales

Question 16

Contribution Rate =

Answer 16

Contribution Margin / Sale or 1 - Variable Rate

Question 17

Contribution Margin =

Answer 17

Fixed Costs + Profit

Question 18

Sales % =

Answer 18

Variable Rate + Contribution Rate

Question 19

Sales $ =

Answer 19

Variable Cost + Contribution Margin

Question 20

Sales (complicated) =

Answer 20

(Fixed + Profit) / Contribution Rate

Question 21

Periodic order method:

Answer 21

Triggered by time; orders are planned to be placed on a regular, recurring time pattern

Question 22

Order Quantity =

Answer 22

Amount required for the upcoming period - Amount present + Desired Ending Inv

Question 23

Perpetual inventory method:

Answer 23

Triggered by inventory levels; orders will only be placed once the inventory on hand is reduced to a predetermined level

Question 24

Reorder point =

Answer 24

Normal usage + Safety factors

Question 25

Reorder Quantity =

Answer 25

Par stock - Reorder point + Normal usage

Question 26

Desired Ending Inventory =

Answer 26

Normal Usage + Safety Factors

Question 27

Normal Usage =

Answer 27

Daily use x Delivery days

Question 28

Order Amount (perishable) =

Answer 28

Par Stock - Inventory on hand

Question 29

Par Stock is

Answer 29

how much stock they will need in stock

Question 30

Bin Cards

Answer 30

Are a simple method to show how much inventory is demanded over time

Question 31

Fresh Meat storage temp

Answer 31

1 - 2 C

Question 32

Fresh Produce storage temp

Answer 32

1 - 3 C

Question 33

Fresh Dairy storage temp

Answer 33

1 - 2 C

Question 34

Fresh Fish storage temp

Answer 34

-1 - 1C

Question 35

Frozen Food storage temp

Answer 35

-18 - -23 C

Question 36

Dry goods/ Staple products storage temp

Answer 36

18 - 21 C

Question 37

Direct goods received

Answer 37

Food charges immediately as costs when received

Question 38

Stores good received

Answer 38

Food carried in inventory; only charged as costs when issued on demand

Question 39

Issuing process has two parts:

Answer 39

1. The physical movement of goods from storage to preparation areas
2. Recording costs of food issued

Question 40

Intraunit transfers

Answer 40

Between departments of the same operation

Question 41

Interunit transfers

Answer 41

Between separate units within a chain

Question 42

Yield % =

Answer 42

Edible portion / As purchased portion

Question 43

The butcher test establishes:

Answer 43

A rational value for the primary portion of meat to be used

Question 44

Cost Factor per Kg =

Answer 44

Cost per usable Kg / As purchased price per Kg

Question 45

Cost Factor per portion =

Answer 45

Portion cost / As purchased price per Kg

Question 46

The cooking loss test establishes

Answer 46

A rational value for the portion of meat after cooking has occurred

Question 47

Standard Portion Cost =

Answer 47

Purchased price per unit / Number of portion per unit