HM - Hospitality Management Food and Beverage Control Questions and Answers — Questions and Answers
Question 1: A restaurant manager is calculating the food cost for the previous month. They started with an inventory valued at $15,000, purchased an additional $20,000 worth of food, and ended the month with an inventory of $12,000. Total food sales for the month were $75,000. What was the food cost percentage for the month?
- 25%
- 30.7% (Correct answer)
- 33.3%
- 49.3%
Correct answer: 30.7%
The formula for food cost percentage is: (Beginning Inventory + Purchases - Ending Inventory) / Total Food Sales. In this scenario: ($15,000 + $20,000 - $12,000) / $75,000 = $23,000 / $75,000 = 0.3066, which rounds to 30.7%.
Question 2: Which of the following is the MOST critical control point in the purchasing and receiving process to prevent financial loss?
- Negotiating bulk discounts with a new supplier.
- Ensuring the delivery driver is friendly and efficient.
- Verifying that the quantities, quality, and prices of delivered goods match the purchase order and invoice. (Correct answer)
- Scheduling all deliveries to arrive during the busiest part of the day.
Correct answer: Verifying that the quantities, quality, and prices of delivered goods match the purchase order and invoice.
The receiving process is a critical control point. Verifying that the delivered items match the purchase order in terms of quantity, quality (checking for spoilage, damage), and agreed-upon price is essential to prevent losses from short shipments, substandard products, or incorrect pricing.
Question 3: In menu engineering, an item that has high popularity but low profitability is classified as a:
- Star
- Plowhorse (Correct answer)
- Puzzle
- Dog
Correct answer: Plowhorse
A 'Plowhorse' is a menu item that is very popular with guests but has a low contribution margin (profitability). Management should consider strategies to make these items more profitable, such as by slightly increasing the price or reducing the cost of ingredients, without decreasing its popularity.
Question 4: A bar manager notices a significant variance between the amount of liquor used according to inventory counts and the amount sold through the POS system. Which of the following is the LEAST likely cause of this discrepancy?
- Over-pouring by bartenders
- Unrecorded spillage or waste
- Employee theft
- A sudden increase in the supplier's price for a specific brand of vodka (Correct answer)
Correct answer: A sudden increase in the supplier's price for a specific brand of vodka
While a price increase from a supplier affects the beverage cost percentage, it does not explain a variance in physical inventory (usage) versus sales data. The other options (over-pouring, waste, and theft) all represent liquor being depleted from inventory without a corresponding sale being registered, thus creating a usage vs. sales discrepancy.
Question 5: The 'First-In, First-Out' (FIFO) method of inventory rotation is essential for controlling food and beverage costs primarily because it:
- Ensures the newest products are always used first to showcase freshness.
- Simplifies the inventory counting process by organizing items alphabetically.
- Minimizes spoilage and waste by ensuring older stock is used before it expires. (Correct answer)
- Allows for easier negotiation of prices with suppliers.
Correct answer: Minimizes spoilage and waste by ensuring older stock is used before it expires.
FIFO is a critical inventory management practice where older stock (First-In) is used before newer stock (First-Out). This rotation minimizes the chance of products expiring or spoiling in storage, which is a direct financial loss.
Question 6: A hospitality manager is implementing a loss prevention program. Which of the following actions would be a key component of controlling cash assets?
- Allowing any employee to handle cash drops to promote a culture of trust.
- Using a single, shared cash drawer for all front-of-house employees during a shift.
- Establishing a policy that requires manager approval for all voids and refunds processed in the POS system. (Correct answer)
- Conducting bank deposits only once a month to improve efficiency.
Correct answer: Establishing a policy that requires manager approval for all voids and refunds processed in the POS system.
Requiring manager approval for transactions like voids and refunds is a fundamental cash handling control. It creates a system of checks and balances, preventing employees from using these functions to cover up theft. Limiting access and requiring oversight for non-standard transactions is a core principle of loss prevention.
