CPFS Cost Control 3 — Questions and Answers
Question 1: What does a food cost percentage of 40% indicate compared to an industry standard of 30%?
- The operation is more profitable than average
- The operation has higher than normal food costs relative to sales (Correct answer)
- The operation has lower portion sizes
- The operation sells more high-margin items
Correct answer: The operation has higher than normal food costs relative to sales
A food cost percentage above the industry benchmark signals excessive spending on food relative to the revenue it generates.
Question 2: Which of the following best describes the 'contribution margin' of a menu item?
- The total revenue generated by that item
- The selling price minus the food cost of that item (Correct answer)
- The percentage of items sold relative to total covers
- The markup percentage applied to ingredient costs
Correct answer: The selling price minus the food cost of that item
Contribution margin is the selling price minus food cost, representing what each item contributes toward covering overhead and profit.
Question 3: An operation purchases 200 lbs of beef at $4.50/lb. After trimming, only 160 lbs are usable. What is the true cost per usable pound?
- $4.50
- $5.25
- $5.63 (Correct answer)
- $6.00
Correct answer: $5.63
True cost = (200 × $4.50) / 160 = $900 / 160 = $5.625 per usable pound.
Question 4: Which type of budget compares planned performance to actual performance for a given period?
- Static budget
- Capital budget
- Flexible budget (Correct answer)
- Zero-based budget
Correct answer: Flexible budget
A flexible budget adjusts expected figures based on actual activity levels, making variance analysis more meaningful.
Question 5: What is the break-even point in a foodservice operation?
- The point where food cost equals labor cost
- The point where total revenue equals total costs with no profit or loss (Correct answer)
- The point where menu prices cover raw ingredient costs
- The point where the operation reaches maximum seating capacity
Correct answer: The point where total revenue equals total costs with no profit or loss
Break-even is reached when total revenue exactly equals total costs, resulting in neither profit nor loss.
Question 6: A foodservice manager uses a yield factor of 0.75 for fresh spinach. If a recipe requires 10 lbs of cleaned spinach, how many pounds must be purchased?
- 7.5 lbs
- 10 lbs
- 12.5 lbs
- 13.3 lbs (Correct answer)
Correct answer: 13.3 lbs
Purchase quantity = required yield / yield factor = 10 / 0.75 = 13.33 lbs.
Question 7: Which practice is most effective for reducing beverage cost percentage in a bar operation?
- Offering larger portion sizes to increase customer satisfaction
- Using standardized jigger measures for every pour (Correct answer)
- Allowing bartenders to free-pour to speed service
- Purchasing premium spirits exclusively
Correct answer: Using standardized jigger measures for every pour
Standardized jigger measures ensure consistent portion sizes, preventing over-pouring that inflates beverage costs.
CPFS Cost Control 3
What does a food cost percentage of 40% indicate compared to an industry standard of 30%?