Inventory Control & Cost Management Flashcards
7 cards from real CRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Inventory Control & Cost Management flashcards as text
Which cost control tool shows the ideal food cost based on standardized recipes compared to actual food cost?
Answer: Theoretical vs. actual food cost report
A theoretical vs. actual food cost report identifies gaps caused by waste, theft, or portion inconsistency.
When a restaurant's actual food cost is higher than its theoretical food cost, the most likely cause is:
Answer: Over-portioning, waste, or theft
A gap above theoretical cost typically signals over-portioning, spoilage, or product going missing.
What is the purpose of conducting a mid-month inventory count?
Answer: To identify cost problems early enough to correct them before period end
A mid-period inventory allows managers to spot excessive usage or shrinkage and adjust operations proactively.
A restaurant's beverage cost percentage is 22%. If beverage sales are $18,000, what is the beverage cost in dollars?
Answer: $3,960
Beverage cost = 22% × $18,000 = $3,960.
Which receiving practice helps ensure invoiced prices match purchase order prices?
Answer: Three-way match
A three-way match compares the purchase order, the receiving report, and the supplier invoice to confirm accuracy.
In restaurant cost accounting, 'prime cost' refers to the combined total of:
Answer: Food cost and total labor cost
Prime cost = Cost of Goods Sold (food + beverage) + Total Labor Cost, typically the largest controllable expense block.
A perpetual inventory system differs from a periodic system in that it:
Answer: Updates inventory records continuously with each purchase and usage transaction
A perpetual system tracks every transaction in real time, providing a running balance of inventory on hand.