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Purchasing and Inventory Flashcards

7 cards from real CFSP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Purchasing and Inventory flashcards as text

  1. Which of the following describes a 'cost-plus' pricing arrangement with a distributor?

    Answer: The buyer pays the distributor's actual cost plus an agreed markup percentage

    Cost-plus pricing means the buyer pays the supplier's invoice cost plus a predetermined markup, offering transparency in pricing.

  2. When storing dry goods in a storeroom, items should be kept at least how high off the floor?

    Answer: 6 inches

    FDA Food Code requires dry storage items to be stored at least 6 inches off the floor to allow cleaning and prevent pest access.

  3. A perpetual inventory system differs from a physical inventory system primarily because it:

    Answer: Records changes to inventory quantities in real time as items are used or received

    A perpetual system updates inventory records continuously with each receipt and issue, providing a running balance at all times.

  4. What is the main purpose of establishing a 'lead time' in purchasing?

    Answer: To determine when to place an order so stock arrives before running out

    Lead time is the elapsed time between placing an order and receiving it, used to calculate the reorder point so stockouts are avoided.

  5. Which government grade indicates the highest quality for US beef purchased by a foodservice operation?

    Answer: US Prime

    USDA Prime is the highest quality grade for beef, indicating superior marbling, tenderness, and flavor.

  6. An invoice shows 10 cases of tomatoes at $18 per case, but only 8 cases were actually delivered. What should the receiver do?

    Answer: Accept 8 cases, note the shortage on the delivery receipt, and request a credit memo from the vendor

    The receiver should document the shortage on the delivery receipt and request a credit to ensure the operation is not overcharged.

  7. Which type of purchase specification includes information about intended use, quality indicators, and market form of a product?

    Answer: Performance specification

    Performance specifications describe what the product must do or achieve, including quality indicators and market form, rather than prescribing an exact brand.