Purchasing, Receiving, and Inventory Control Flashcards
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A purchase specification document primarily serves to:
Answer: Define exact quality standards a product must meet when ordered
A purchase specification establishes the exact quality, grade, size, and other attributes required of a product so vendors deliver consistent items.
What does 'As Purchased' (AP) weight refer to in food costing?
Answer: The weight of a product before any trimming, fabrication, or cooking
AP weight is the full weight of the product as received from the vendor, before any preparation losses such as trimming, fabrication, or cooking.
A yield test is conducted primarily to:
Answer: Measure actual usable product obtained after fabrication to set accurate costs
A yield test measures what percentage of an AP product is usable after trimming and fabrication, enabling accurate cost-per-serving calculations.
A standing order is best described as:
Answer: A recurring automatic order of a fixed quantity delivered on set days without re-ordering each time
A standing order automates routine deliveries of consistent items like dairy or bread, reducing daily ordering labor for high-turnover staples.
What is the primary purpose of issuing a formal purchase order (PO)?
Answer: To create a legal record of the items, quantities, and agreed prices ordered from a vendor
A purchase order is a formal document that commits the buyer to purchasing specified items at agreed prices, creating accountability and a paper trail for accounting.
Which of the following best describes a competitive-bid purchasing process?
Answer: Soliciting price quotes from multiple vendors and selecting the best value offer
Competitive bidding requires multiple vendors to submit price quotes, allowing the operation to choose the best combination of price and quality.
A cost-plus purchasing contract means the buyer pays:
Answer: The vendor's actual product cost plus a fixed markup or percentage
In a cost-plus contract, the buyer pays the vendor's verified cost of the product plus an agreed-upon markup, providing price transparency.