CFSP Cost Control 2 — Questions and Answers
Question 1: A restaurant's food cost percentage is 34% with total food sales of $45,000. What is the cost of food sold?
- $13,230
- $15,300 (Correct answer)
- $11,750
- $16,200
Correct answer: $15,300
$45,000 × 0.34 = $15,300 cost of food sold.
Question 2: Which inventory valuation method assigns the cost of the most recently purchased items to goods sold first?
- FIFO
- LIFO (Correct answer)
- Weighted average
- Specific identification
Correct answer: LIFO
LIFO (Last In, First Out) assumes the most recently purchased items are sold first.
Question 3: What does the term 'as purchased' (AP) weight refer to in foodservice cost control?
- Weight of food after cooking
- Weight of food after trimming and preparation
- Weight of food as it arrives before any processing (Correct answer)
- Weight of food served on the plate
Correct answer: Weight of food as it arrives before any processing
AP weight is the weight of the food item as it is received before any trimming, cooking, or processing.
Question 4: A steakhouse purchases whole beef tenderloins at $12/lb AP. After trimming, the yield is 70%. What is the edible portion cost per pound?
- $8.40
- $14.40
- $17.14 (Correct answer)
- $16.80
Correct answer: $17.14
EP cost = AP cost ÷ yield % = $12 ÷ 0.70 = $17.14 per pound.
Question 5: Which of the following best describes a 'contribution margin' in foodservice operations?
- The percentage of revenue remaining after all expenses
- The dollar amount remaining after subtracting food cost from menu price (Correct answer)
- Total revenue minus fixed costs only
- The ratio of labor cost to food cost
Correct answer: The dollar amount remaining after subtracting food cost from menu price
Contribution margin is the selling price of a menu item minus its food cost, representing what it contributes to covering overhead and profit.
Question 6: A foodservice operation has fixed costs of $8,000/month and a contribution margin ratio of 40%. What sales volume is needed to break even?
- $3,200
- $20,000 (Correct answer)
- $11,200
- $32,000
Correct answer: $20,000
Break-even sales = Fixed costs ÷ Contribution margin ratio = $8,000 ÷ 0.40 = $20,000.
Question 7: What is the primary purpose of a daily receiving report in cost control?
- To schedule deliveries from vendors
- To record all incoming goods and verify quantities and prices against purchase orders (Correct answer)
- To track daily sales by menu category
- To calculate end-of-day food cost percentage
Correct answer: To record all incoming goods and verify quantities and prices against purchase orders
A daily receiving report documents all incoming deliveries, verifying items, quantities, and prices match the purchase order to prevent discrepancies.
CFSP Cost Control 2
A restaurant's food cost percentage is 34% with total food sales of $45,000.
What is the cost of food sold?