CEC Purchasing and Inventory Management 2 — Questions and Answers
Question 1: A physical inventory count differs from the perpetual inventory record. What is the most likely cause?
- Vendor over-delivery
- Unrecorded transfers, waste, or theft (Correct answer)
- Inaccurate recipe costing
- Seasonal menu changes
Correct answer: Unrecorded transfers, waste, or theft
Variance between physical and perpetual counts typically indicates unrecorded inter-department transfers, spoilage, portioning errors, or theft.
Question 2: What is the purpose of a specification sheet (spec sheet) in purchasing?
- To outline the vendor's payment schedule
- To document the exact quality standards required for each purchased item (Correct answer)
- To list the kitchen's weekly sales forecast
- To track employee purchasing authority levels
Correct 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.
Question 3: Which inventory method assigns the most recent purchase price to the cost of goods sold?
- FIFO
- LIFO (Correct answer)
- Weighted average
- Standard cost
Correct 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.
Question 4: An executive chef wants to reduce slow-moving inventory. Which strategy is most effective?
- Increase par levels to ensure availability
- Feature those ingredients on specials to accelerate usage (Correct answer)
- Return all slow-movers to the vendor immediately
- Purchase only on a daily basis going forward
Correct 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.
Question 5: What is the primary benefit of using a standing purchase order for high-volume staple items?
- It eliminates the need for a receiving log
- It streamlines reordering and ensures consistent supply without repeated negotiations (Correct answer)
- It allows the kitchen to bypass vendor quality checks
- It automatically adjusts pricing based on market fluctuations
Correct 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.
Question 6: Which storage temperature range is required for dry goods in a properly managed US commercial storeroom?
- 32°F–40°F
- 50°F–70°F (Correct answer)
- 71°F–85°F
- 41°F–49°F
Correct 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.
CEC Purchasing and Inventory Management 2
A physical inventory count differs from the perpetual inventory record.
What is the most likely cause?