CFSP Cost Control 3 — Questions and Answers
Question 1: A menu item sells for $18.00 and has a food cost of $5.40. What is the food cost percentage for this item?
- 25%
- 33.3%
- 30% (Correct answer)
- 27.5%
Correct answer: 30%
Food cost % = ($5.40 ÷ $18.00) × 100 = 30%.
Question 2: Which of the following is an example of a semi-variable (mixed) cost in foodservice?
- Rent
- Raw food ingredients
- Utilities (Correct answer)
- Depreciation on equipment
Correct answer: Utilities
Utilities have a fixed base charge plus a variable component that changes with production volume, making them semi-variable costs.
Question 3: In the CFSP cost control framework, what does a 'variance report' primarily identify?
- Differences between actual and standard (budgeted) costs (Correct answer)
- Changes in menu pricing over time
- The range of prices offered by different vendors
- Variations in guest count by meal period
Correct answer: Differences between actual and standard (budgeted) costs
A variance report compares actual costs incurred against standard or budgeted costs to highlight areas needing corrective action.
Question 4: What is the formula for calculating the cost of food sold (cost of sales)?
- Opening inventory + Purchases – Closing inventory (Correct answer)
- Closing inventory – Opening inventory + Purchases
- Purchases – Opening inventory + Closing inventory
- Opening inventory – Purchases + Closing inventory
Correct answer: Opening inventory + Purchases – Closing inventory
Cost of food sold = Opening inventory + Purchases – Closing inventory.
Question 5: A cafeteria served 350 covers with total labor costs of $1,750. What is the labor cost per cover?
- $4.00
- $5.50
- $5.00 (Correct answer)
- $6.25
Correct answer: $5.00
$1,750 ÷ 350 covers = $5.00 labor cost per cover.
Question 6: Which pricing method determines a menu price by dividing the food cost by the desired food cost percentage?
- Competitive pricing
- Factor method (food cost percentage method) (Correct answer)
- Prime cost method
- Contribution margin method
Correct answer: Factor method (food cost percentage method)
The factor method (or food cost percentage method) calculates menu price as: food cost ÷ desired food cost %.
Question 7: A restaurant's prime cost is $28,000 and total sales are $70,000. What is the prime cost percentage?
- 28%
- 35%
- 40% (Correct answer)
- 45%
Correct answer: 40%
Prime cost % = ($28,000 ÷ $70,000) × 100 = 40%.
CFSP Cost Control 3
A menu item sells for $18.00 and has a food cost of $5.40.
What is the food cost percentage for this item?