Socrative lesson 4

Question 1

Which of the following is in relation to the variable expense behaviour?

Answer 1

As more revenues come in the percentage stays the same BUT the dollar amount increases

Question 2

The purpose of a uniform system of accounts is to encourage consistency in the reporting of financial information.

Answer 2

true

Question 3

What is another name for an operation’s P&L statement?

Answer 3

income statement

Question 4

An operation’s prime costs include its total cost of sales and its total…

Answer 4

labor costs

Question 5

Foodservice operators can measure their sales in terms of either dollars or

Answer 5

number of customers served

Question 6

What is the denominator in the food cost percentage formula?

Answer 6

food sales

Question 7

What is the formula that managers use to calculate their gross profit?

Answer 7

total sales - total cost of sales = gross profit

Question 8

What should be the impact on beverage costs (BC) and beverage cost percentage (BC%) if an operation attracts more guests and, as a result, sells more beverage products?

Answer 8

BC increases, BC% stays the same

Question 9

A manager’s operation has both fixed and variable labor costs. What will be the impact on fixed cost (FC) and fixed cost percentage (FC%) spent for labor if the manager increases the operation’s sales by serving more guests?

Answer 9

FC is unchanged and FC% decreases

Question 10

An analysis of other expenses should be performed each time and operations income statement is produced.

Answer 10

true