CFSP Purchasing and Inventory 2

Question 1

Which purchasing method involves buying a set quantity of product whenever stock falls below a predetermined level?

Accepted Answer

Par stock system

Answer

The par stock system triggers a purchase order when on-hand quantities drop below the established minimum (par) level.

Question 2

A foodservice operation receives a shipment of ground beef that feels warm to the touch. What is the FIRST action the receiver should take?

Accepted Answer

Check the internal temperature with a calibrated thermometer

Answer

Temperature must be verified with a calibrated thermometer before making an accept/reject decision.

Question 3

Which of the following BEST describes an 'open market' purchasing method?

Accepted Answer

Competitive bidding among multiple suppliers for each order

Answer

Open market purchasing involves soliciting competitive bids from multiple suppliers, typically for each individual purchase.

Question 4

When calculating the cost of goods sold (COGS), which formula is correct?

Accepted Answer

Opening inventory + Purchases – Closing inventory

Answer

COGS = Opening inventory + Purchases – Closing inventory measures how much food was actually used in the period.

Question 5

A distributor offers a 2/10 net 30 payment term. What does this mean?

Accepted Answer

A 2% discount if the invoice is paid within 10 days; full amount due in 30 days

Answer

2/10 net 30 means the buyer earns a 2% discount by paying within 10 days; otherwise the full invoice is due in 30 days.

(CFSP) Certified Foodservice Professional Practice Test