CSC CSC Cost Control & Purchasing 2 — Questions and Answers
Question 1: What is the difference between 'as-purchased cost' (AP) and 'as-used cost' (AU)?
- AP is the price paid to the vendor; AU is the cost after accounting for yield loss (Correct answer)
- AP is the daily cost; AU is the annual cost
- AP is wholesale price; AU is retail price
- They refer to the same cost
Correct answer: AP is the price paid to the vendor; AU is the cost after accounting for yield loss
AP cost is what you pay the vendor in the raw state; AU cost factors in yield percentage to reflect the actual cost of the usable, portionable product.
Question 2: What is a 'par level' in kitchen inventory management?
- The maximum stock to ever have on hand
- The minimum stock level that triggers a reorder (Correct answer)
- The average daily usage of an ingredient
- The expiration date tracking system
Correct answer: The minimum stock level that triggers a reorder
Par level is the minimum quantity of an ingredient that should be on hand at all times, signaling a reorder when inventory drops to or below that threshold.
Question 3: Which of the following would INCREASE food cost percentage?
- Raising menu prices
- Reducing portion sizes
- Excessive food waste and spoilage (Correct answer)
- Negotiating lower prices with suppliers
Correct answer: Excessive food waste and spoilage
Excessive waste and spoilage increases the cost of food used without generating additional revenue, directly raising food cost percentage.
Question 4: What is a 'competitive bid' purchasing system?
- Ordering exclusively from a single preferred vendor
- Soliciting price quotes from multiple vendors and selecting the best offer (Correct answer)
- Buying directly from farms
- Using a group purchasing organization
Correct answer: Soliciting price quotes from multiple vendors and selecting the best offer
Competitive bidding involves requesting price quotes from multiple suppliers and choosing the vendor with the best combination of price and quality.
Question 5: How does proper mise en place contribute to cost control in a professional kitchen?
- It reduces waste and speeds service by ensuring ingredients are prepped efficiently and fully utilized (Correct answer)
- It only affects speed, not food costs
- It is a purchasing system, not a prep technique
- It applies only to pastry production
Correct answer: It reduces waste and speeds service by ensuring ingredients are prepped efficiently and fully utilized
Proper mise en place reduces ingredient waste, prevents over-ordering, speeds service, and ensures expensive products are fully utilized during prep.
Question 6: What is a 'group purchasing organization' (GPO) in food service?
- A government food safety inspection body
- A collective of food service operations that pools purchasing power for better pricing (Correct answer)
- A vendor certification program
- A food delivery cooperative
Correct answer: A collective of food service operations that pools purchasing power for better pricing
A GPO allows multiple food service operations to combine purchasing volume to negotiate lower prices from suppliers than they could achieve individually.
CSC CSC Cost Control & Purchasing 2
What is the difference between 'as-purchased cost' (AP) and 'as-used cost' (AU)?