CCC Kitchen Financial Controls 3

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%?

Accepted Answer

$18.00

Answer

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?

Accepted Answer

It values remaining stock at the most recent purchase prices, reflecting current replacement cost

Answer

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?

Accepted Answer

3 times

Answer

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:

Accepted Answer

Usage rate between deliveries plus a safety margin

Answer

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?

Accepted Answer

Menu engineering analysis

Answer

Menu engineering plots each item's sales mix against contribution margin to classify stars, plowhorses, puzzles, and dogs.

CCC Practice Test