LAST FSM TEST EVER!

Question 1

FIFO

Answer 1

An inventory method in which stock is rotated to ensure that items in storage are used (or issued) in the order in which they were received

Question 2

average price method

Answer 2

do the average

Question 3

Purchase orders/ Invoices

Answer 3

A list of goods shipped or delivered. Includes price and quantities

Question 4

FICA and Medicare contribution rates and policies

Answer 4

?

Question 5

Food service target markets and marketing terms

Answer 5

A market segment identified by the seller as having specific wants or needs
Promotions are specific and well-planned events to attract customers and influence perception or buying behaviors.
Advertising results when a promotion is presented to the public.
Publicity consists of acts or devices designed to attract public interest.
Public Relations seeks to use publicity to influence the feelings, opinions, or beliefs about a company, its products, and services.

Marketing Cycle is a recurrent series of activities designed to meet the wants and needs of customers. The cycle is driven by customer feedback.

Question 6

Pro forma income statements

Answer 6

made before the fact , for new operations
pro forma income statement
which shows sales, expenses, and profit. Each
line may show these in dollars and percents

Question 7

branding

Answer 7

A complete marketing package that communicates a recognized and consistent brand identity to the customer
Retail-item branding- the sale of nationally recognized items in existing foodservice operation
Restaurant branding- newer trend- refers to the inclusion of a national restaurant chain in an existing operation
In-house or signature branding- items are prepared within the specific foodservice operation

Question 8

AP and EP and know how to calculate amounts to order, pricing/unit

Answer 8

AP = EP ÷ yield percent (as a decimal)

Question 9

eoq formula

Answer 9

EOQ = √2FS/CP

F = fixed cost
 S = sales or usage in number of unit over a year
 C= carry cost
 P= purchase price per unit

Question 10

Markup on cost method

Answer 10

Menu item cost ÷ standard food cost percentage

(expressed as a decimal) = selling price

Question 11

TRA method

Answer 11

Add together the labor cost %, other cost %, and
profit % shown as a decimal.
2. Subtract the total of these from 1.00. The result is
the divisor.
3. Divide the standard portion cost of the menu item
by the divisor. The result is the selling price of
the item

Question 12

, Factor Method

Answer 12

The formula for the factor is 1.00 ÷
standard food cost percentage expressed as
a decimal

Question 13

Cost of Food Sold

Answer 13

(Opening inventory + Purchases) – Closing inventory

= Cost of Sales

Question 14

calculating money to spend on variable cost labor

Answer 14

?

Question 15

Anticipated Rate of Return (ARR)

Answer 15

ARR-anticipated rate of return, compares savings or income generated to costs of the investment.

Question 16

Depreciation

Answer 16

Depreciation is calculated by taking the purchase price of the investment less salvage value, if any, and dividing it by the expected life of the investment.

Question 17

Pay back period

Answer 17

Pay-back Period = Cash outlay/annual net income or savings before depreciation, but after taxes

Question 18

Yield

Answer 18

?

Question 19

Food Cost percentage

Answer 19

Food cost ÷ Food sales = Food cost percentage

Question 20

Inventory and Employee turnover rates

Answer 20

persons hired/number of employees =et

cost of food sold/average inventory = ir

Question 21

common size analysis

Answer 21

Common-size analysis compares two time periods or budget to actual by looking at each line item as a percent of total sales.
The resulting percentage is easier to compare than dollars.

Question 22

Prime cost

Answer 22

The three largest costs that must be
controlled are food and beverage costs and
labor cost.

 Together they are know as the prime cost
because they are the three highest costs in
the operation.

Question 23

Fixed/ Variable/ Semi-variable costs

Answer 23

Fixed costs- remain the same regardless of
sales volume
 Insurance
 Variable costs- increase and decrease in
direct proportion to sales
 Food
 Semi-variable costs- increase and decrease
as sales changes, but not in direct proportion
 Labor

Question 24

Menu engineering

Answer 24

concept developed to help restaurant and foodservice professionals track variables that influence a menu’s profitability

Question 25

Productivity

Answer 25

Productivity can be measured in various ways. 1. Sales per person-hour 2. Covers per person-hour 3. Sales per cover

Question 26

FTEs

Answer 26

``` Staffing needs are often stated in full-time equivalents.  A full-time equivalent is 8 hours per day 40 hours per week 173.3 hours per month 2080 hours per year ``` An organization that is open 7 days per week requires 1.4 FTE’s to fill each fulltime position. 8 hours per day x 7 days = 56 hours per week. 56 hours ÷ 40 hours per FTE = 1.4 FTE

Question 27

Types of budgets

Answer 27

the master budget coordinates every aspect of the operation The operating budget is a plan that minimally includes revenues and expenses. It is a forecast of revenue (sales), expenses, and profit for a specified period of time or fiscal year. A cash budget is developed to project the receipt of revenue and the expenditure of funds. capital budget is a long-term plan prepared to estimate or predict the costs of capital outlays or expenditures and their financing.

Question 28

budgeting terms – assets/ liabilities

Answer 28

Current asset or liquid asset is one that can be quickly converted to cash, such as marketable securities, accounts receivable, inventory b. Fixed assets are things such as furniture, equipment, building, land. Fixed assets, with the exception of land, depreciate over time. Depreciation is a decrease in value of a fixed asset over the useful life of the asset Liability is an obligation or debt that the organization has incurred Capital is the net worth or value of the business.

Question 29

TQM manager qualities

Answer 29

Develop relationships of openness and trust Build collaboration and teamwork Manage with statistical tools and quality processes based on collected facts Support results through recognition and rewards Create a learning and continuously improving organization.

Question 30

Fish Diagrams/ Pareto charts

Answer 30

fish diagram Used to focus on the different causes of a problem that allows for grouping and organizing efforts to improve a process Pareto chart Bar charts in which the strategy is to work on the tallest bar or problem that occurs most frequently

Question 31

Americans with Disabilities act

Answer 31

The Americans with Disabilities Act mandates some general guidelines for implement- ing reasonable accommodations in the workplace and dining areas for persons with disabilities.

Question 32

Master schedule vs. crew schedule

Answer 32

A crew schedule is the application of the Master Schedule to day-to-day operation, with names and days and times that employees are to work  The master schedule is the standard, and the total hours scheduled on the crew schedule must agree with the master schedule.

Question 33

Empowerment of employees

Answer 33

Employees need to be trained in how they will be involved in a team and taught how to use several TQM tools for problem-solving and measurement of various data. These tools will make the problem-solving activity of teams easier and more effective. A discussion of some the the tools of TQM follows.

Question 34

Uses of aluminum in foodservice

Answer 34

for cooking and baking utensils, steam-jacketed kettles, cabinets, service carts, racks, and other mobile equipment. Features-light weight, high thermal and electrical conductivity, does not corrode readily, relatively hard and durable, withstands high temperatures, discolors from acids and alkalis, pitted by strong alkali

Question 35

Liquidity ratio

Answer 35

Liquidity ratios show the organization’s ability to meet its short term obligations. Current ratio is determined as follows: Current ratio = current_assets current liabilities A current ratio of 1:1 or higher is acceptable.

Question 36

Preventative maintenance program for equipment

Answer 36

Preventive maintenance is a documented program of routine checks or inspections of facili- ties and equipment to ensure the sanitary, safe, and efficient operation of a foodservice department. It includes regular cleaning and maintenance such as oiling motors on mixers, and any needed repairs that may become evident during the inspection process. This pro- gram is usually done in cooperation with the maintenance or plant engineering department.

Question 37

Lighting of foodservice areas /Foot candles

Answer 37

Light intensity is measured in foot candles obtained from light meter readings, and the number of required foot candles per square foot depends on the work to be done.

Question 38

Scoop sizes

Answer 38

Scoops/dishers: # based on servings per | quart

Question 39

Flooring and wall types (pros/cons) for foodservices

Answer 39

• Quarry tile is the preferred flooring material for kitchens and dishrooms Painted drywall is the most economical wall material. It is a gypsum (lime) core covered on both sides with heavy paper.