Inventory Control & Cost Management Flashcards

Which of the following best describes 'yield percentage' in food cost calculations?

Answer: The percentage of a purchased product that is usable after trimming or cooking

Yield percentage = (Usable Weight ÷ As-Purchased Weight) × 100, accounting for trim loss and cooking loss.

A restaurant buys a 10-lb roast for $6/lb. After trimming, 7.5 lbs are usable. What is the cost per usable pound?

Answer: $8.00

Cost per usable lb = (10 × $6) ÷ 7.5 = $60 ÷ 7.5 = $8.00.

Which storage practice is most effective at minimizing cross-contamination and ensuring FIFO compliance simultaneously?

Answer: Dating and labeling all containers and placing new deliveries behind existing stock

Dating, labeling, and rotating stock so new deliveries go behind existing product enforces FIFO and reduces contamination risk.

What is the main advantage of using par stock levels in a restaurant?

Answer: They ensure enough inventory is on hand to meet demand without over-ordering

Par stock defines the minimum quantity needed between deliveries, preventing both stockouts and excess inventory.

Which term describes the practice of adding a standard markup to the cost of a menu item to determine its selling price?

Answer: Cost-plus pricing

Cost-plus pricing sets menu prices by adding a desired markup percentage to the item's recipe cost.

A restaurant manager notices that liquor inventory is consistently lower than expected. Which control measure is most targeted at detecting theft?

Answer: Implementing bottle-for-bottle exchange policies and bottle marking

Bottle-for-bottle exchange (requiring an empty to obtain a full bottle) and marking bottles deter theft and track movement.

Which metric indicates how many times a restaurant turns over its inventory within a given period?

Answer: Inventory turnover rate

Inventory turnover rate = Cost of Food Used ÷ Average Inventory Value; a higher rate indicates fresher product and efficient purchasing.