CCA CCA Cost Control & Food Costing 2 — Questions and Answers
Question 1: In menu engineering, what category describes menu items with HIGH popularity and HIGH contribution margin?
- Plowhorses
- Dogs
- Stars (Correct answer)
- Puzzles
Correct answer: Stars
In menu engineering, 'Stars' are items with both high popularity and high contribution margin, making them the most desirable items on the menu.
Question 2: What is the purpose of a recipe conversion factor (RCF)?
- To convert recipes from metric to imperial measurements
- To adjust recipe quantities when scaling up or down from the original yield (Correct answer)
- To convert raw ingredient cost into per-portion cost
- To calculate the selling price from the food cost
Correct answer: To adjust recipe quantities when scaling up or down from the original yield
The recipe conversion factor (desired yield ÷ original yield) proportionally scales all ingredient quantities when changing the number of portions a recipe produces.
Question 3: Which inventory valuation method assigns the cost of the most recently purchased items to the cost of goods sold?
- FIFO (First In, First Out)
- LIFO (Last In, First Out) (Correct answer)
- Weighted Average
- Specific Identification
Correct answer: LIFO (Last In, First Out)
LIFO (Last In, First Out) assigns the cost of the most recently purchased inventory to cost of goods sold, meaning newer purchase prices flow into COGS first.
Question 4: What is the break-even point in a foodservice operation?
- The sales volume at which total revenue equals total costs, resulting in zero profit or loss (Correct answer)
- The point at which food cost percentage drops below 30%
- The minimum number of menu items needed to be profitable
- The sales level at which labor cost equals food cost
Correct answer: The sales volume at which total revenue equals total costs, resulting in zero profit or loss
The break-even point is where total revenue equals total costs (fixed + variable), meaning the operation neither earns a profit nor incurs a loss.
Question 5: Over-portioning in a restaurant affects profitability primarily by:
- Increasing customer satisfaction and long-term repeat business
- Increasing actual food cost above the theoretical food cost (Correct answer)
- Reducing labor costs through faster service
- Improving table turnover rates
Correct answer: Increasing actual food cost above the theoretical food cost
Over-portioning gives customers more food than the standardized recipe specifies, driving actual food cost above theoretical cost and reducing profitability.
Question 6: What does 'as-purchased (AP) cost' refer to in food costing?
- The cost of food after it has been fully prepared and plated
- The price paid for an ingredient in the form it arrives from the supplier (Correct answer)
- The cost of a dish after accounting for all labor involved in preparation
- The discounted price negotiated with vendors for bulk orders
Correct answer: The price paid for an ingredient in the form it arrives from the supplier
As-purchased (AP) cost is the price paid to the supplier for an ingredient in its raw, unprocessed form before any trimming, cooking, or preparation occurs.
Question 7: A food cost percentage of 32% means:
- 32 cents of every revenue dollar is spent on food ingredients (Correct answer)
- 32% of menu items are profitable
- Labor costs are 32% of food costs
- The restaurant wastes 32% of purchased food
Correct answer: 32 cents of every revenue dollar is spent on food ingredients
A food cost percentage of 32% means that for every dollar of food revenue generated, 32 cents is spent on the cost of food ingredients.
CCA CCA Cost Control & Food Costing 2
In menu engineering, what category describes menu items with HIGH popularity and HIGH contribution margin?