Practice Test GeeksCCC Practice Test
← All CCC Flashcard Decks

Purchasing, Receiving, and Inventory Control Flashcards

7 cards from real CCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Purchasing, Receiving, and Inventory Control flashcards as text

  1. Par stock level is defined as:

    Answer: The minimum quantity of an item that must be on hand to meet demand until the next delivery

    Par stock is the minimum on-hand quantity that ensures operations won't run out of an item between deliveries, factoring in usage and delivery lead time.

  2. Food cost percentage is calculated using which formula?

    Answer: (Cost of Food Sold ÷ Food Sales) × 100

    Food cost percentage = (Cost of Food Sold ÷ Food Sales) × 100; it tells what portion of food revenue is consumed by ingredient costs.

  3. A perpetual inventory system differs from a physical inventory system in that it:

    Answer: Tracks stock levels continuously as items are received and issued, without waiting for a physical count

    A perpetual inventory tracks every addition and removal in real time so management always has a theoretical on-hand count, minimizing shrinkage blind spots.

  4. Inventory turnover rate is used primarily to:

    Answer: Measure how quickly inventory is used and replenished, indicating purchasing efficiency

    Inventory turnover rate shows how often the inventory is used up and replaced in a period; a high rate indicates lean, efficient purchasing with minimal dead stock.

  5. The FIFO (First In, First Out) method of stock rotation requires that:

    Answer: Older products are placed in front and used before newer deliveries placed behind them

    FIFO places newer stock behind existing stock so older items are used first, reducing spoilage and maintaining quality.

  6. An operation's beginning inventory is $8,000, purchases total $22,000, and ending inventory is $6,000. What is the cost of food sold?

    Answer: $24,000

    Cost of Food Sold = Beginning Inventory + Purchases − Ending Inventory = $8,000 + $22,000 − $6,000 = $24,000.

  7. Dead stock in a food service context refers to:

    Answer: Inventory items that are not being used, ordered in excess, or nearing expiration without demand

    Dead stock represents over-purchased or slow-moving inventory that ties up capital, increases spoilage risk, and inflates food cost if not addressed.