CCC Kitchen Financial Management 2

Question 1

A restaurant's beginning inventory is $8,000, purchases are $22,000, and ending inventory is $6,000. What is the cost of goods sold?

Accepted Answer

$24,000

Answer

$28,000

Answer

$20,000

Answer

$36,000

Question 2

A menu item has a food cost of $4.50 and the target food cost percentage is 30%. What should the menu price be?

Accepted Answer

$15.00

Answer

$18.00

Answer

$12.00

Answer

$13.50

Question 3

Which of the following is considered a fixed cost in kitchen operations?

Accepted Answer

Rent for the restaurant space

Answer

Food purchases

Answer

Linen usage fees based on volume

Answer

Hourly labor wages

Question 4

A whole beef tenderloin costs $88 and yields 8 pounds of usable portions after trimming from an 11-pound purchase weight. What is the cost per usable pound?

Accepted Answer

$11.00

Answer

$8.00

Answer

$9.68

Answer

$12.57

Question 5

What does a prime cost of 62% indicate for a restaurant?

Accepted Answer

Combined food and labor costs equal 62% of sales

Answer

Food cost alone is 62% of sales

Answer

Profit margin is 62%

Answer

Overhead is 62% of total expenses

Question 6

A kitchen's actual food cost is 34% but the theoretical food cost is 29%. What is the most likely explanation for the variance?

Accepted Answer

Waste, over-portioning, or theft

Answer

Menu prices are too low

Answer

The theoretical cost was calculated with vendor discounts

Answer

Sales volume is too high

Question 7

Which inventory valuation method assumes the oldest stock is used first, matching standard kitchen rotation practice?

Accepted Answer

FIFO

Answer

Weighted average

Answer

LIFO

Answer

Specific identification