CFSP Cost Control 5 — Questions and Answers
Question 1: A restaurant's beverage sales are $12,000 and beverage cost is $3,600. What is the beverage cost percentage?
- 28%
- 33.3%
- 25%
- 30% (Correct answer)
Correct answer: 30%
Beverage cost % = ($3,600 ÷ $12,000) × 100 = 30%.
Question 2: Which of the following scenarios represents an INDIRECT cost in foodservice operations?
- Ground beef used in a burger
- Hourly wages for line cooks
- Utilities shared across the entire facility (Correct answer)
- Seafood purchased for a specific banquet
Correct answer: Utilities shared across the entire facility
Indirect costs like shared utilities cannot be directly traced to a single menu item or event and must be allocated.
Question 3: What is the primary advantage of using a weighted average cost method for inventory valuation?
- It always results in the lowest taxable income
- It smooths out price fluctuations by averaging all purchase costs (Correct answer)
- It matches current costs to current revenues most accurately
- It is the simplest method requiring the least record-keeping
Correct answer: It smooths out price fluctuations by averaging all purchase costs
Weighted average cost averages all purchase prices together, reducing the impact of price swings on reported cost of goods sold.
Question 4: A hotel banquet serves 200 guests at a guaranteed minimum of 180. Food is prepared for 200. What is this guaranteed minimum called?
- Cover count
- Attendance guarantee (Correct answer)
- Minimum consumption clause
- Overage allowance
Correct answer: Attendance guarantee
An attendance guarantee is the minimum number of guests the client commits to paying for, regardless of actual attendance.
Question 5: Which of the following describes the 'minimum-maximum' inventory control system?
- Setting one fixed reorder point for all items based on average usage
- Defining both a reorder point (minimum) and the maximum quantity to have on hand (Correct answer)
- Ordering only when shelves are completely empty
- Using technology to automatically reorder based on POS sales data
Correct answer: Defining both a reorder point (minimum) and the maximum quantity to have on hand
The min-max system sets a reorder trigger (minimum) and a ceiling quantity (maximum) to prevent both stockouts and over-purchasing.
Question 6: A cook uses 5 oz of protein per portion instead of the standardized 4 oz. If 80 portions are served at a protein cost of $0.50/oz, what is the total over-portioning cost?
- $20
- $40 (Correct answer)
- $60
- $80
Correct answer: $40
Extra oz per portion = 1 oz; total extra oz = 80 × 1 = 80 oz; cost = 80 × $0.50 = $40.
Question 7: In foodservice cost control, what does 'theoretical food cost' represent?
- The actual cost of food calculated at the end of the accounting period
- The cost that should have been incurred based on standardized recipes and sales mix (Correct answer)
- The food cost budgeted at the start of the fiscal year
- The lowest possible food cost achievable under ideal purchasing conditions
Correct answer: The cost that should have been incurred based on standardized recipes and sales mix
Theoretical food cost is what costs should be if every item were prepared and sold exactly according to standardized recipes with no waste or theft.
CFSP Cost Control 5
A restaurant's beverage sales are $12,000 and beverage cost is $3,600.
What is the beverage cost percentage?