Unit 1 Part 2

Question 1

What are the three methodologies of f and b cost control?

Answer 1

Planning Phase
Operational Phase
Post Operational Phase

Question 2

____ policy defines the market to be catered for and develops a marketing mix to satisfy the needs and
wants of the target customers.

Answer 2

Marketing Policy

Question 3

Steps in Planning Phase

Answer 3

1.Identify target market and segments.
2. Develop 4 Ps: product, price, place, promotion.
3. Design promotion mix for communication
4. Build corporate image by meeting customer expectations.

Question 4

____ policy defines the main objective of
operating food and beverage faculties and the methods by
which such objectives are to be achieved.

Answer 4

The Catering Policy

Question 5

Catering Policy outlines three profiles. What are those?

Answer 5

1. Outlet profile - Types of outlet, operating status, hours,
   décor, ambience, layout plan, covers, service, staffing etc.
2. Clientele Profile - Age group, sex, food habits, average spending, frequency of visit, etc.
3. Menu Profile - Types of menu, meals, cuisine etc

Question 6

_____phase deals with
establishing standards and standard
procedures to exercise control in
relation to the five main stages of
the control cycle.

Answer 6

Operational Phase

Question 7

What are the Five (5) Main Stages of the Control Cycle?

Answer 7

1. Purchasing
2. Receiving
3. Storing and Issuing
4. Preparing
5. Selling

Question 8

What phase have these contents?
▪ Food and beverage cost reporting / Identifying
variances
▪ Measurement of Performance / Performance
evaluation
▪ Corrective Action/Implementing corrective
actions.

Answer 8

Post Operational Phase

Question 9

essential for ensuring the efficient operation of a
hospitality establishment. It involves overseeing all
aspects of staffing, including recruitment, training,
scheduling, performance management, and employee engagement.

Answer 9

Personal Management

Question 10

__________ is based on how profits
respond to prices, costs, and volume.

Answer 10

Cost-volume-profit ratio

Question 11

_______ describes the relationship between sales volumes in units to
other expenses such as fixed expenses, variable
expenses, total expenses and total sales.

Answer 11

Cost-volume-profit graph

Question 12

_____ is the revenue obtained from the
exchange of products or services for a value.

Answer 12

Sales

Question 13

Two types of sales

Answer 13

Monetary and Non - monetary

Question 14

a reduction in the value of an asset for the purpose of securing benefit or gain

Or in FB business
the price to the hotel or restaurant of goods &
services when the goods are consumed or the services rendered

Answer 14

Cost

Question 15

• substance from which the product or dish or drink
  is made.
• comprise semi-processed ingredients such as
  sauces or pickles which are used in the food industry.

Answer 15

Material

Question 16

The cost incurred for commodities. Used in preparation of food ex. meat, fish, oils,
herbs & spices. It is the cost which is an integral
part of the finished product which is served to
the guest.

Direct Material or Indirect Material?

Answer 16

Direct Material

Question 17

Is the cost which is ancillary to the business and
is not an integral part of the product but is
necessary for preparation.
Ex. fuel cost such as gas or electricity used for
preparing food & cleaning supplies.

Direct Material or Indirect Material?

Answer 17

Indirect Material

Question 18

compensation given to employees for completion of a particular job for which they have been assigned & to convert the raw materials to the
finished products to be served to the guests.

Answer 18

Labour

Question 19

Costs that remain constant regardless of the level of
production or sales.

Answer 19

Fixed Cost

Question 20

Costs that vary in direct proportion to changes in
production or sales levels

Answer 20

Variable Cost

Question 21

Costs that have both fixed and variable components

Answer 21

Semi-variable cost

Question 22

Costs that can be directly traced to the production of
specific goods or services

Answer 22

Direct Cost

Question 23

Costs that cannot be directly attributed to specific products or
services but are necessary for overall operations

Answer 23

Indirect Cost

Question 24

These are the direct costs associated with the
production of food & beverages

Answer 24

Prime Cost

Question 25

These are the costs incurred to convert raw
materials into finished food and beverage products.

Answer 25

Conversion Cost

Question 26

Costs that can be influenced or controlled by
managerial decisions.

Answer 26

Controllable Cost

Question 27

Costs that cannot be easily influenced or controlled
by managerial decisions.

Answer 27

Non-controllable Cost

Question 28

Costs incurred per unit of output or sale

Answer 28

Unit Cost

Question 29

The sum of all costs incurred in a given period

Answer 29

Total Cost

Question 30

Budgeted or projected costs for a future period.

Answer 30

Planned Cost

Question 31

cost which is expected for a particular period
of time.

Answer 31

Budgeted Cost