According to NRAEF who controls "Noncontrollable Costs"?
What is OWNER
100
The best way to tell at a glance how an operation is performing is by reading an
What is INCOME STATEMENT (or profit and loss report)
100
Definition = the actual dollar value of the food used by an operation during a certain period
What is FOOD COST
100
Fill in the missing part of formula:
Opening Inventory + __________ = Total Food Available
What is PURCHASES
200
The most common classifications for types of costs are controllable, noncontrollable, fixed, variable, and _______
What is SEMIVARIABLE
200
This is the term used to convey what remains after all expenses are paid (figured by subtracting total expenses from gross profit or subtracting total expenses and food from sales)
What is PROFIT
200
T or F: According to NRAEF, Employee meals are normally included in food cost.
What is FALSE
200
In the following problem, please identify the closing inventory:
Opening = 1,000
Purhases = 5,000
Cost of Food Sold = 4,000
What is $2,000
300
According to NRAEF, Insurance is an example of this type of cost?
What is NONCONTROLLABLE (because once an insurance policy has been negotiated, management has no control over the rate charged)
300
The process of checking each item on a budget against actual figures and determining the difference is called...
What is LINE ITEM REVIEW
300
T or F: According to NRAEF, Theft and Waste are normally included in food cost?
What is TRUE
300
In the following problem, please identify the opening inventory:
Purhases = 6,254
Cost of Food Sold = 21,120
Closing = 742
What is 15,608
400
This type of cost will increase or decrease as sales increase or decrease IN DIRECT PROPORTION
What is VARIABLE COST
400
In addition to comparing actual costs to budgeted costs - a manager should compare to _______ costs to see if the operation is improving or regressing.
What is HISTORICAL costs
400
T or F: According to NRAEF, the sales price of Complimentary meals are normally written off prior to figuring food cost.
What is FALSE (the cost not the sales price is deducted)
400
In the following problem, please identify the closing inventory:
Opening = 21,000
Cost of Food Sold = 47,100
Sales = $151,275
What is 31.14%
500
Labor is classified as this type of cost
What is SEMIVARIABLE
500
According to NRAEF, an example of a corrective action that a manager can take if food cost is high is...
What is
REDUCE PORTION SIZE
REPLACE FOOD ITEM WITH MORE COST-EFFECTIVE INGREDIENT
FEATURE ITEMS WITH HIGHER PROFIT MARGINS
RAISE MENU PRICES
500
What is the justification for Grease Sales to be taken as a credit to food prior to determining food cost?
What is BECAUSE THIS ITEM WAS A FOOD COST ORIGINALLY
500
In the following problem, please identify the cost of food sold AND food cost:
Closing = 2,689
Opening = 10,251
Sales = 68,415
Purhases = 15,015