CFSP Cost Control 5

Question 1

A restaurant's beverage sales are $12,000 and beverage cost is $3,600. What is the beverage cost percentage?

Accepted Answer

30%

Answer

Beverage cost % = ($3,600 ÷ $12,000) × 100 = 30%.

Question 2

Which of the following scenarios represents an INDIRECT cost in foodservice operations?

Accepted Answer

Utilities shared across the entire facility

Answer

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?

Accepted Answer

It smooths out price fluctuations by averaging all purchase costs

Answer

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?

Accepted Answer

Attendance guarantee

Answer

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?

Accepted Answer

Defining both a reorder point (minimum) and the maximum quantity to have on hand

Answer

The min-max system sets a reorder trigger (minimum) and a ceiling quantity (maximum) to prevent both stockouts and over-purchasing.

(CFSP) Certified Foodservice Professional Practice Test