CRC CRC - Certified Research Chef Menu Engineering and Cost Management Questions and Answers 1 — Questions and Answers
Question 1: What is food cost percentage, and how is it calculated?
- Total sales divided by ingredient cost × 100
- Ingredient cost divided by menu selling price × 100 (Correct answer)
- Labor cost divided by total revenue × 100
- Menu price divided by portion weight × 100
Correct answer: Ingredient cost divided by menu selling price × 100
Food cost percentage = (ingredient cost ÷ selling price) × 100, which indicates what proportion of revenue is consumed by raw materials.
Question 2: In menu engineering, a menu item classified as a 'Star' has which characteristics?
- High popularity, low profit margin
- Low popularity, high profit margin
- High popularity, high profit margin (Correct answer)
- Low popularity, low profit margin
Correct answer: High popularity, high profit margin
Stars are high-margin and high-popularity items that should be prominently featured and protected in menu design.
Question 3: What is the purpose of a yield test when costing a raw protein ingredient?
- To measure shelf life under refrigeration
- To determine the usable portion of an ingredient after trimming and cooking loss (Correct answer)
- To evaluate the flavor profile of the protein
- To assess packaging compliance
Correct answer: To determine the usable portion of an ingredient after trimming and cooking loss
A yield test quantifies how much usable product remains after fabrication, allowing accurate cost-per-usable-pound calculations.
Question 4: A research chef is asked to reduce a product's food cost by 5% without changing the consumer-facing product. Which lever is most appropriate?
- Reduce portion size visibly
- Identify a lower-cost ingredient that matches the functional and sensory performance of the current one (Correct answer)
- Increase the selling price by 5%
- Remove the product from the menu
Correct answer: Identify a lower-cost ingredient that matches the functional and sensory performance of the current one
Finding a functionally equivalent lower-cost ingredient maintains product integrity while achieving the cost target.
Question 5: Which concept describes the minimum number of covers or units a menu item must sell to recover its fixed and variable costs?
- Contribution margin
- Break-even point (Correct answer)
- Gross margin
- Prime cost
Correct answer: Break-even point
The break-even point is where total revenue from a product equals total costs, meaning no profit or loss is generated at that volume.
Question 6: What is 'contribution margin' in the context of a food product or menu item?
- The selling price minus total overhead costs
- The selling price minus the direct ingredient cost of the item (Correct answer)
- The total revenue from all items sold in a period
- The percentage of total sales from a single item
Correct answer: The selling price minus the direct ingredient cost of the item
Contribution margin is the amount each unit sold contributes to covering fixed costs and generating profit after subtracting variable ingredient costs.
CRC CRC - Certified Research Chef Menu Engineering and Cost Management Questions and Answers 1
What is food cost percentage, and how is it calculated?