CFSP Purchasing and Inventory 5 — Questions and Answers
Question 1: Which inventory control method is BEST suited for tracking high-cost, low-volume items like lobster or prime rib?
- ABC analysis — Class C tracking
- ABC analysis — Class A tracking (Correct answer)
- Visual inventory method
- First-in, first-out rotation only
Correct answer: ABC analysis — Class A tracking
ABC analysis classifies Class A items as high-value, low-volume products requiring the tightest controls and most frequent counts.
Question 2: A vendor offers a volume discount: orders of 50+ cases receive 8% off. If the regular price is $25/case and you order 60 cases, what is the total discounted cost?
- $1,380 (Correct answer)
- $1,400
- $1,500
- $1,620
Correct answer: $1,380
60 cases × $25 = $1,500; 8% discount = $120; $1,500 – $120 = $1,380.
Question 3: What does the term 'yield percentage' mean in the context of purchasing?
- The percentage of the purchase price that is profit
- The usable portion of a product after trimming, cooking, or processing compared to its as-purchased weight (Correct answer)
- The percentage of orders delivered on time by a vendor
- The ratio of food cost to total revenue
Correct answer: The usable portion of a product after trimming, cooking, or processing compared to its as-purchased weight
Yield percentage = (edible portion weight ÷ as-purchased weight) × 100, and directly affects true cost per usable pound.
Question 4: Which of the following is an example of a standing order?
- A one-time bulk purchase of canned goods at a discounted price
- A weekly automatic delivery of a set quantity of bread without placing a new order each time (Correct answer)
- A competitive bid submitted to three vendors for fresh produce
- A blanket contract specifying maximum annual spend with a single distributor
Correct answer: A weekly automatic delivery of a set quantity of bread without placing a new order each time
A standing order is a recurring agreement for automatic delivery of a fixed quantity on a regular schedule without repeated purchase orders.
Question 5: Which document serves as the internal authorization to purchase specific goods at an approved price before the purchase order is issued?
- Receiving report
- Requisition form (Correct answer)
- Credit memo
- Delivery manifest
Correct answer: Requisition form
A requisition form is submitted internally to request purchasing authorization before the official purchase order is sent to the vendor.
Question 6: Fresh fish received at a foodservice operation should show which characteristic to be accepted?
- Cloudy, sunken eyes and mild ammonia odor
- Bright red gills, firm flesh, and mild sea-like smell (Correct answer)
- Soft flesh that springs back slowly when pressed
- Strong fishy odor indicating freshness
Correct answer: Bright red gills, firm flesh, and mild sea-like smell
Fresh fish should have bright red gills, firm flesh that springs back quickly, and a mild oceanic smell — not a strong fishy or ammonia odor.
Question 7: What is the purpose of a 'bid sheet' in competitive purchasing?
- To record quantities used from inventory each day
- To list required products so multiple vendors can submit price quotes for comparison (Correct answer)
- To document discrepancies found during the receiving process
- To calculate the reorder point for each item in inventory
Correct answer: To list required products so multiple vendors can submit price quotes for comparison
A bid sheet standardizes product specifications so that competing vendors quote on identical items, enabling accurate price comparisons.
CFSP Purchasing and Inventory 5
Which inventory control method is BEST suited for tracking high-cost, low-volume items like lobster or prime rib?