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| if a restaurant's monthly sales revenue is $62,750 and the desired food cost percentage is 28% then the dollar amount of monthly food cost should be approx.: |
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| "Padding" the inventory is a term used to describe which of the following activities? |
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Definition
| increase the ending inventory |
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| A restaurant's budgeted food cost percentage is 32%. Last month, food sales revenue was $84,290 and the actual food cost was$33,787. What was the actual food cost percentage? |
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| Before a cook can obtain foods from the storeroom, usually he or she must present to the storeroom manager an authorized |
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| the formula for computing food cost is |
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Definition
| beginning inventory + purchases -ending inventory-credit for employee meals= |
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Term
| If a restaurant manager manipulates the value of the beginning food inventory used in actual food cost formula by falsely saying that it is much higher than it really is, the actual food cost calculated with the formula will be much less than it would be if the correct inventory value was used |
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given the following data, compute the food cost percentage:
Food cost: $175,000
Beverage cost: $50,000
Total sales: $800,000
Sales mix:
Food Sales= 80% of total sales
Beverage sales= 20% of total sales |
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Term
| Fidelity bonds are insurance policies that insure the business owner for |
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Definition
| fraud committed by cash-handling employees |
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Term
| spoilage can be minimalized by adhearing to rigid sanitation practices, rotating the stock, and preventing the proper environmental conditions for each item in storage |
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Term
| utilizing a rolling, locking cage is a great way to create controls for a remote bar. |
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Term
| the most common type of kickback is |
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Definition
| the buyer agrees to pay a slightly higher AP price than necessary, and later on receives an under-the-table payment form the supplier or salesperson. |
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Definition
| record a perpetual inventory |
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Term
| The typical user-buyer (such as a chef) would not be involved in the hospitality operation's bill-buying process. |
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| you should compare the invoice with the original purchase order to ensure that the shipment is exactly what you ordered |
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| an owner-manager should try to remove collusion opportunities by separating the buying, receiving, storing , and issuing activities. |
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| the most common type of inventory shrinkage is |
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| stock held in the department areas instead of in the main storeroom is usually referred to as |
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| perhaps the most effective approach to minimizing chronic employee theft is to |
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Definition
| restrict access to high-cost items |
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Term
| pilferage is sometimes referred to as |
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| surprise audits are excellent security practices, but they are much too expensive and time consuming to perform in restaurants and hotels. |
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given the following data, compute the food cost.
last months ending food inventory: $35,000
this months ending food inventory: $40,000
food purchases this month $75,000
food sales this months$210,000
food credit for employee meals $0.00
this months payroll cost $50,000 |
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Definition
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Term
| even though many hospitality operations allow the buyer to do the buying and receiving, ideally, for control purposes, the buyer should not do the receiving. |
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Term
| they typical hospitality operation will usually conduct a physical inventory of all products once every |
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Term
| spotters and shoppers usually observe a hospitality operation while posing as |
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Definition
| using older inventory items before newer ones. |
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