CFSP Purchasing and Inventory 4

Question 1

Which of the following describes a 'cost-plus' pricing arrangement with a distributor?

Accepted Answer

The buyer pays the distributor's actual cost plus an agreed markup percentage

Answer

Cost-plus pricing means the buyer pays the supplier's invoice cost plus a predetermined markup, offering transparency in pricing.

Question 2

When storing dry goods in a storeroom, items should be kept at least how high off the floor?

Accepted Answer

6 inches

Answer

FDA Food Code requires dry storage items to be stored at least 6 inches off the floor to allow cleaning and prevent pest access.

Question 3

A perpetual inventory system differs from a physical inventory system primarily because it:

Accepted Answer

Records changes to inventory quantities in real time as items are used or received

Answer

A perpetual system updates inventory records continuously with each receipt and issue, providing a running balance at all times.

Question 4

What is the main purpose of establishing a 'lead time' in purchasing?

Accepted Answer

To determine when to place an order so stock arrives before running out

Answer

Lead time is the elapsed time between placing an order and receiving it, used to calculate the reorder point so stockouts are avoided.

Question 5

Which government grade indicates the highest quality for US beef purchased by a foodservice operation?

Accepted Answer

US Prime

Answer

USDA Prime is the highest quality grade for beef, indicating superior marbling, tenderness, and flavor.

(CFSP) Certified Foodservice Professional Practice Test