CRP Inventory Control & Cost Management 2 — Questions and Answers
Question 1: A restaurant's food cost percentage is calculated by dividing cost of food sold by which figure?
- Total operating expenses
- Total food revenue (Correct answer)
- Net profit
- Gross payroll
Correct answer: Total food revenue
Food cost percentage = (Cost of Food Sold ÷ Food Revenue) × 100.
Question 2: Which inventory method assumes the first items purchased are the first items used?
- LIFO
- Weighted average
- FIFO (Correct answer)
- Specific identification
Correct answer: FIFO
FIFO (First In, First Out) assumes earliest purchased inventory is used first, reducing spoilage risk.
Question 3: A restaurant purchases 50 lbs of salmon at $12/lb and later 30 lbs at $14/lb. Using weighted average cost, what is the cost per pound?
- $12.75 (Correct answer)
- $13.00
- $12.50
- $13.25
Correct answer: $12.75
Weighted average = (50×$12 + 30×$14) ÷ 80 = $1,020 ÷ 80 = $12.75/lb.
Question 4: What term describes the difference between what inventory should theoretically be used versus what was actually used?
- Usage variance (Correct answer)
- Shrinkage allowance
- Carry-over cost
- Transfer credit
Correct answer: Usage variance
Usage variance (or inventory variance) flags discrepancies caused by waste, theft, or over-portioning.
Question 5: Which document records the internal movement of food items from a main storeroom to a kitchen sub-unit?
- Purchase order
- Receiving report
- Requisition form (Correct answer)
- Vendor invoice
Correct answer: Requisition form
A requisition form authorizes and tracks the transfer of product from storage to a production area.
Question 6: A restaurant wants to reduce its beverage cost percentage. Which action directly targets that goal?
- Increasing server tip pooling
- Implementing measured pours with jiggers (Correct answer)
- Extending bar hours
- Adding a premium beer list
Correct answer: Implementing measured pours with jiggers
Using jiggers ensures consistent, measured pours that prevent over-pouring and reduce beverage cost.
Question 7: What does 'dead stock' refer to in a restaurant inventory context?
- Inventory that has passed its use-by date and been discarded
- Items purchased but rarely or never used in current menu offerings (Correct answer)
- Products returned to the supplier
- Produce received in poor condition
Correct answer: Items purchased but rarely or never used in current menu offerings
Dead stock is inventory that sits unused because it no longer matches current menu needs, tying up capital.
CRP Inventory Control & Cost Management 2
A restaurant's food cost percentage is calculated by dividing cost of food sold by which figure?