Marketing and Public Relations

Question 1

Marketing Mix

Answer 1

product, place, pricing, promotion

Question 2

Product

Answer 2

a good, service, or idea.

Question 3

Place

Answer 3

place where product is provided

Question 4

Price

Answer 4

sales price of a good/service

Question 5

Promotion

Answer 5

Used to increase awareness of a good or service

Question 6

Break-even analysis

Answer 6

seeks to find the production level in which total expenses (fixed and variable cost) are paid for; profit = 0 at break-even

Question 7

break-even point

Answer 7

(number of meals sold) = Total fixed cost divided by (average selling price of meal - variable cost per meals

Question 8

Payback period

Answer 8

the amount of time it takes for an investment, purchase, or project to pay for itself

Question 9

Factor or markup factor method

Answer 9

raw food costs are multiplied by a markup factor that includes labor, overhead, profit

Question 10

Markup factor

Answer 10

divide percentage of money spent on raw food costs into 100

Question 11

selling price

Answer 11

food cost x markup factor (factor or markup factor method)

prime x pricing factor (Prime cost method)

Question 12

Prime cost method

Answer 12

accounts for labor and food cost via separate percentages.

Question 13

Prime cost

Answer 13

food cost + labor cost

Question 14

Pricing factor

Answer 14

100% divide by (food cost % + labor cost %)

Question 15

Loss leader strategy

Answer 15

item sold at less than cost to attract buyers who might then purchase products at profitable price

Question 16

Banquet hall

Answer 16

includes staff and service

Question 17

location catering

Answer 17

staffing and kitchen available but no availability for food prep and food is brought in from outside

Question 18

mobile unit

Answer 18

food is prepared kitchen and transported to desired location

Question 19

Pricing catering menus

Answer 19

food costs, labor, prep, maintenance, and overhead

Question 20

Collusion

Answer 20

inherent downfall of any internal control measure; involves two or more individuals working together to misappropriate assets and conceal the fraud.

Question 21

Cash account procedures

Answer 21

Separation of duties

Count and record cash balances before and after employee shifts

Receipts from customer orders should be sequentially numbered and held for future reconciliation.

Authorized employees should make disbursements via sequentially numbered checks

Cash should be deposited daily

A bank reconciliation should be done monthly by an outside party