CFSP Cost Control 4 — Questions and Answers
Question 1: What is the recommended industry benchmark range for total prime cost (food + beverage + labor) as a percentage of sales in a full-service restaurant?
- 45–50%
- 55–65% (Correct answer)
- 35–40%
- 70–75%
Correct answer: 55–65%
Most full-service restaurants target a prime cost of 55–65% of sales to remain profitable after overhead expenses.
Question 2: Which of the following best describes 'pilferage' as a cost control concern?
- Spoilage due to improper storage temperatures
- Theft of food, beverage, or cash by employees or customers (Correct answer)
- Over-portioning caused by untrained staff
- Shrinkage from cooking and evaporation
Correct answer: Theft of food, beverage, or cash by employees or customers
Pilferage refers to theft of inventory, supplies, or cash, which inflates costs and reduces profitability.
Question 3: A manager compares weekly actual food cost against the standard food cost derived from recipes. This practice is known as:
- Physical inventory
- Menu engineering
- Cost variance analysis (Correct answer)
- Yield testing
Correct answer: Cost variance analysis
Cost variance analysis compares actual costs to standard (recipe-based) costs to identify discrepancies.
Question 4: In which situation would a manager use a 'pull system' for inventory management?
- When purchasing large quantities to take advantage of volume discounts
- When restocking is triggered only by actual consumption or demand (Correct answer)
- When setting par levels based on historical weekly averages
- When scheduling vendor deliveries on a fixed calendar cycle
Correct answer: When restocking is triggered only by actual consumption or demand
A pull system replenishes inventory only when items are consumed, reducing over-purchasing and waste.
Question 5: Which cost control document specifies the exact ingredients, quantities, preparation methods, and yield for each menu item?
- Purchase order
- Production schedule
- Standardized recipe (Correct answer)
- Transfer memo
Correct answer: Standardized recipe
A standardized recipe ensures consistency in quality, portion size, and cost for every menu item.
Question 6: A foodservice director notices beverage cost is consistently 3% above target. Which action would MOST directly identify the root cause?
- Increase menu prices for all beverages
- Conduct a detailed pour-cost analysis and compare against standardized recipes (Correct answer)
- Reduce the number of beverage options on the menu
- Increase the reorder point for beverage inventory
Correct answer: Conduct a detailed pour-cost analysis and compare against standardized recipes
A pour-cost analysis measures actual beverage usage against standardized recipe standards to pinpoint where cost overruns occur.
Question 7: What term describes the practice of transferring food items between departments (e.g., kitchen to bar) and recording the associated cost?
- Requisition
- Inter-departmental transfer (Correct answer)
- Credit memo
- Shrinkage adjustment
Correct answer: Inter-departmental transfer
Inter-departmental transfers move goods between cost centers and must be recorded to accurately reflect each department's true food or beverage cost.
CFSP Cost Control 4
What is the recommended industry benchmark range for total prime cost (food + beverage + labor) as a percentage of sales in a full-service restaurant?