Purchasing and Inventory Management Flashcards

A physical inventory count differs from the perpetual inventory record. What is the most likely cause?

Answer: Unrecorded transfers, waste, or theft

Variance between physical and perpetual counts typically indicates unrecorded inter-department transfers, spoilage, portioning errors, or theft.

What is the purpose of a specification sheet (spec sheet) in purchasing?

Answer: To document the exact quality standards required for each purchased item

A spec sheet defines precise quality standards—grade, size, weight, trim, and brand—so every vendor bid is evaluated on equal terms and delivered product meets kitchen requirements.

Which inventory method assigns the most recent purchase price to the cost of goods sold?

Answer: LIFO

LIFO (Last In, First Out) matches the most recently purchased (and typically higher) costs to current sales, which can affect reported food costs in periods of inflation.

An executive chef wants to reduce slow-moving inventory. Which strategy is most effective?

Answer: Feature those ingredients on specials to accelerate usage

Creating daily specials or chef's features that utilize slow-moving inventory converts potential waste into revenue while reducing storage carrying costs.

What is the primary benefit of using a standing purchase order for high-volume staple items?

Answer: It streamlines reordering and ensures consistent supply without repeated negotiations

Standing purchase orders establish pre-negotiated terms for recurring deliveries, reducing administrative effort and ensuring continuity of supply for staple products.

Which storage temperature range is required for dry goods in a properly managed US commercial storeroom?

Answer: 50°F–70°F

Dry goods should be stored at 50°F–70°F (10°C–21°C) in a cool, dry, ventilated area to prevent spoilage, pest infestation, and moisture damage.