CPFS Cost Control 3

Question 1

What does a food cost percentage of 40% indicate compared to an industry standard of 30%?

Accepted Answer

The operation has higher than normal food costs relative to sales

Answer

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?

Accepted Answer

The selling price minus the food cost of that item

Answer

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?

Accepted Answer

$5.63

Answer

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?

Accepted Answer

Flexible budget

Answer

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?

Accepted Answer

The point where total revenue equals total costs with no profit or loss

Answer

Break-even is reached when total revenue exactly equals total costs, resulting in neither profit nor loss.

(CPFS) Certified Professional in Foodservice Sanitation Practice Test