Master Brewer Certification Food Cost Management & Pricing 3

Question 1

A brewery produces a batch of 10 barrels of stout with total ingredient costs of $1,800. Each barrel contains approximately 248 twelve-ounce pints. What is the ingredient cost per pint?

Accepted Answer

$0.73

Answer

Total pints = 10 × 248 = 2,480; cost per pint = $1,800 / 2,480 ≈ $0.73.

Question 2

What is the primary purpose of a 'recipe costing sheet' in a brewery?

Accepted Answer

To calculate the total ingredient cost per unit of finished beer

Answer

A recipe costing sheet itemizes all ingredient costs for a recipe, enabling the brewery to calculate the precise cost per unit and set profitable pricing.

Question 3

A taproom's actual pour cost was 24% while the theoretical pour cost was 20%. What does this 4% variance most likely indicate?

Accepted Answer

There may be over-pouring, waste, or theft occurring

Answer

A gap between actual and theoretical pour cost (actual being higher) signals operational issues such as over-pouring, spillage, spoilage, or theft.

Question 4

Which pricing strategy sets a beer's price based on what the target customer segment is willing to pay rather than on production cost?

Accepted Answer

Value-based pricing

Answer

Value-based pricing sets prices according to the perceived value and willingness to pay of the target customer, which can allow premium pricing for craft beers.

Question 5

A brewery's gross profit margin is calculated as:

Accepted Answer

(Revenue – COGS) / Revenue

Answer

Gross profit margin = (Revenue – Cost of Goods Sold) / Revenue, measuring the percentage of revenue remaining after direct production costs.

Master Brewer Certification Practice Test

Master Brewer Certification Practice Test

Master Brewer Certification Food Cost Management & Pricing 3