Kitchen Financial Controls Flashcards

An operation budgets $12,000 for food purchases but spends $13,800. What is the budget variance percentage?

Answer: 15% over budget

Variance = ($13,800 − $12,000) ÷ $12,000 = 15% over budget.

Contribution margin for a menu item is calculated as:

Answer: Selling price minus food cost

Contribution margin is the gross profit each item earns: its selling price less its plate cost.

During a period of rising dairy prices, which action best protects food cost without hurting quality?

Answer: Recost recipes and adjust portion sizes or prices where justified

Regular recosting reveals which items are affected so targeted portion or price adjustments can restore margins.

A daily food cost report shows purchases of $2,400, transfers in of $100, transfers out of $300, and sales of $7,000. What is the daily food cost percentage?

Answer: 31.4%

Adjusted cost = $2,400 + $100 − $300 = $2,200, and $2,200 ÷ $7,000 = 31.4%.

Which is the primary financial reason for using standardized recipes throughout the kitchen?

Answer: They produce a consistent, predictable cost per portion

Standardized recipes lock in ingredient quantities and yields, making portion costs consistent and forecastable.

The break-even point for a restaurant is reached when:

Answer: Total revenue equals total fixed plus variable costs

At break-even, revenue exactly covers all fixed and variable costs, producing zero profit or loss.

Spot-checking the cash bank and comparing POS voids and comps to manager approvals is designed to detect:

Answer: Revenue theft and unauthorized discounting

Auditing voids, comps, and cash on hand exposes skimming and unapproved giveaways at the point of sale.