Master Brewer Certification Food Cost Management & Pricing 2

Question 1

A brewery's taproom sells a pint of IPA for $8.00 with a pour cost of $1.60. What is the pour cost percentage?

Accepted Answer

20%

Answer

Pour cost percentage = (cost / selling price) × 100 = ($1.60 / $8.00) × 100 = 20%.

Question 2

Which inventory valuation method assigns the cost of the most recently purchased ingredients to goods sold first?

Accepted Answer

LIFO

Answer

LIFO (Last-In, First-Out) assumes the most recently purchased inventory is sold first, which can reduce taxable income during inflationary periods.

Question 3

A craft brewery wants to price a new seasonal ale using a 28% target pour cost. If the ingredient cost per pint is $2.24, what should the selling price be?

Accepted Answer

$8.00

Answer

Selling price = cost / target pour cost percentage = $2.24 / 0.28 = $8.00.

Question 4

What does 'yield percentage' refer to in brewing ingredient cost calculations?

Accepted Answer

The usable portion of an ingredient after waste and loss

Answer

Yield percentage represents the usable amount of an ingredient after trimming, spoilage, or processing losses, directly affecting the true cost per usable unit.

Question 5

A brewer purchases 500 lbs of malt at $0.80/lb but records 10% shrinkage during milling. What is the true cost per usable pound?

Accepted Answer

$0.89

Answer

Usable weight = 500 × 0.90 = 450 lbs; true cost = (500 × $0.80) / 450 = $400 / 450 ≈ $0.889 per lb.

Master Brewer Certification Practice Test

Master Brewer Certification Practice Test

Master Brewer Certification Food Cost Management & Pricing 2