This
If a restaurant’s daily food cost is $550 and total sales are $1,475, what is its daily food cost percentage?
37%
A buyer must place an order for ketchup. Par stock is 12 cases, 5 cases are in stock, and 2 cases will be used before delivery. How many cases should the buyer order?
9
The process of inspecting, accepting, and, in some cases, rejecting deliveries of goods and services is called
receiving
The ideal amount of inventory items that an operation should have at all times is called
par stock
The amount of funds available to a restaurant or foodservice operation at any given time is called its
cash position
The three main layers in the channel of distribution are primary sources, intermediary sources, and
Retailers
An economic good that is a product of agriculture or mining is an example of a
commodity
The company that buys food items from a farmer and then resells those same food items to a retailer is known as a(n)
intermediary source
Which type of inventory system relies on the review of the entire stock on a regular basis?
physical inventory
Store dry food away from walls and at least how many inches off of the floor?
6
Which type of inventory system records items when they are received and then when they are used up?
perpetual
A record of all goods that a restaurant or foodservice operation has on hand both in storage and in the kitchen is called a(n)
inventory
Production sheets are usually prepared by the
chef
The official procedure that employees use when taking an item out of the storeroom and putting it into production is called
issuing
Money or other goods received by a person in exchange for purchasing from a specific vendor is called
kickback
A legally binding written document that details exactly what the buyer is ordering from the vendor is called a(n)
purchase order
A legal, binding business arrangement for the supply of goods or services at a fixed price is called a
contract
Which document do buyers and managers use to forecast their buying needs?
production record
A notice of a price that a supplier gives to a buyer during the purchasing process is called a
quote
If an item is rejected at delivery, what form should the receiver complete?
credit memo
At what temperature should live shellfish be stored?
41°F (5°C)
When employees illegally take inventory items for their personal use it is called
pilfering
Which production record lists all menu items that the chefs will prepare on a given day?
production sheet
Delivering fresh lobsters from Cape Cod to a market in Wichita, Kansas, is more expensive than delivering the lobsters to a market in New York. This is an example of what type of value?
place
Items that are in constant demand are called
staples
What describes in detail the characteristics of products and services that an operation wants to buy?
specifications
When a restaurant or foodservice operation has made too much food it is called
overproduction
A legal business relationship in which an independent owner buys the right to use a company’s name, products, and logo is called a
franchise
____________________ is the illegal taking of inventory items by employees for their personal use.
pilfering
T/F
Although difficult to control, vermin are disease-free animals.
false
The convenience of buying food items in bulk instead of in ready-to-use portions is known as what value?
form
The amount of water moisture in the air or in a contained space such as a refrigerator is called
humidity
What is the proper storage humidity level for most fruits and vegetables?
85% to 95%
Sales mix records show items that sell well, which are also called _____________________.
leaders
T/F
Par stock levels are the ideal amounts of inventory items that an operation should have at all times.
True
A manager who wants to know how popular a menu item is over the course of a month would look at the
sales mix record
The official procedures employees use when taking an item out of the storeroom and putting it into production is called
issuing
The flow of food to an operation is called the
channel of distribution
_______________ are independent business owners who buy the right to use a company’s name, products, and logo.
franchisees
T/F
Nonperishable products are food products sold or distributed in a form that will spoil or decay within a limited period of time.
false
Wholesalers, distributors, and suppliers are all part of what layer in the channel of distribution?
intermediary sources
What form does a manager need to complete to purchase a new piece of equipment?
requisition form
Which layer in the channel of distribution includes the farmers and ranchers who raise produce and livestock?
primary sources
A(n) ____________________ shows the cost of using a convenience food product compared to the cost of making the item from scratch.
make-or-buy analysis
T/F
Gross profit is the difference between the total cost of food and the cost of goods issued during a period
F
Price savings created when a buyer purchases bulk quantities of food instead of individually portioned servings is called what type of value?
form
The price that retailers pay for the convenience of selecting the time of delivery from suppliers is called what value?
time
This term describes when a restaurant or foodservice operation runs out of an item.
stock-out
A(n) ______________________ is a number assigned to each inventory item that alerts the buyer that the item needs to be restocked by the next delivery.
reorder point
T/F
For dry storage, the temperature of the storeroom should be between 60°F and 80°F (16°C and 27°C).
F