CCC Kitchen Financial Controls 3 — Questions and Answers
Question 1: Using the factor method, what menu price should a chef set for an item costing $4.50 with a target food cost of 25%?
- $18.00 (Correct answer)
- $11.25
- $13.50
- $22.50
Correct answer: $18.00
The pricing factor is 100 ÷ 25 = 4, so $4.50 × 4 = $18.00.
Question 2: Why should inventory items be valued using the FIFO method during a physical count?
- It values remaining stock at the most recent purchase prices, reflecting current replacement cost (Correct answer)
- It always produces the lowest inventory value
- It eliminates the need for par levels
- It matches the oldest prices to remaining stock
Correct answer: It values remaining stock at the most recent purchase prices, reflecting current replacement cost
Under FIFO the oldest goods are assumed used first, so ending inventory carries the latest, most current prices.
Question 3: An operation has monthly food sales of $90,000 and food inventory averaging $9,000. What is its inventory turnover rate if monthly COGS is $27,000?
- 3 times (Correct answer)
- 10 times
- 9 times
- 0.3 times
Correct answer: 3 times
Inventory turnover = COGS ÷ average inventory, so $27,000 ÷ $9,000 = 3 turns per month.
Question 4: A par stock level for a kitchen ingredient should be based primarily on:
- Usage rate between deliveries plus a safety margin (Correct answer)
- The maximum storage space available
- The vendor's minimum order size
- Last year's holiday demand
Correct answer: Usage rate between deliveries plus a safety margin
Par levels are set to cover expected usage until the next delivery plus a small buffer for unexpected demand.
Question 5: Which report best helps a chef de cuisine identify which menu items are both popular and profitable?
- Menu engineering analysis (Correct answer)
- Daily labor schedule
- Vendor price list
- Health inspection report
Correct answer: Menu engineering analysis
Menu engineering plots each item's sales mix against contribution margin to classify stars, plowhorses, puzzles, and dogs.
Question 6: In menu engineering terms, an item with high popularity but low contribution margin is called a:
- Plowhorse (Correct answer)
- Star
- Dog
- Puzzle
Correct answer: Plowhorse
Plowhorses sell well but contribute little profit per sale, often warranting cost reduction or a price adjustment.
Question 7: Which control most effectively deters theft from dry storage areas?
- Restricting storeroom access to authorized staff and issuing goods by requisition (Correct answer)
- Posting the inventory value on the door
- Storing items alphabetically
- Increasing par levels
Correct answer: Restricting storeroom access to authorized staff and issuing goods by requisition
Limited access plus documented requisitions creates accountability for every item leaving storage.
CCC Kitchen Financial Controls 3
Using the factor method, what menu price should a chef set for an item costing $4.50 with a target food cost of 25%?