PCC Food Cost Management & Pricing 2 — Questions and Answers
Question 1: A chef purchases 10 lbs of salmon at $12/lb. After butchering, 7.5 lbs are usable. What is the cost per usable pound?
- $16.00 (Correct answer)
- $12.00
- $14.40
- $18.00
Correct answer: $16.00
Total cost is $120; dividing by 7.5 usable lbs gives $16.00 per usable pound.
Question 2: Which pricing strategy sets menu prices based on what competitors in the same market charge?
- Competition-based pricing (Correct answer)
- Cost-plus pricing
- Value-based pricing
- Contribution margin pricing
Correct answer: Competition-based pricing
Competition-based pricing uses competitor prices as the primary benchmark rather than internal costs.
Question 3: A restaurant's food cost percentage is 32% and total food sales are $45,000. What is the food cost in dollars?
- $14,400 (Correct answer)
- $13,500
- $16,200
- $12,600
Correct answer: $14,400
$45,000 × 0.32 = $14,400 in food costs.
Question 4: What does 'par stock' refer to in kitchen inventory management?
- The minimum stock level needed to meet demand until the next delivery (Correct answer)
- The maximum amount of an ingredient ever purchased
- The ideal portion size for a menu item
- The amount of food wasted per shift
Correct answer: The minimum stock level needed to meet demand until the next delivery
Par stock is the predetermined minimum quantity of an item needed to cover demand between deliveries.
Question 5: A dish has a food cost of $4.80 and is priced at $22.00. What is the contribution margin?
- $17.20 (Correct answer)
- $22.00
- $4.80
- $11.00
Correct answer: $17.20
Contribution margin = selling price minus food cost = $22.00 − $4.80 = $17.20.
Question 6: Which method of inventory valuation assumes the most recently purchased items are sold first?
- LIFO (Correct answer)
- FIFO
- Weighted average
- Specific identification
Correct answer: LIFO
LIFO (Last In, First Out) assumes the most recently received inventory is sold or used first.
Question 7: A personal chef charges $150 for a dinner party and the food cost is $42. What is the food cost percentage?
- 28% (Correct answer)
- 32%
- 25%
- 35%
Correct answer: 28%
$42 ÷ $150 × 100 = 28% food cost percentage.
PCC Food Cost Management & Pricing 2
A chef purchases 10 lbs of salmon at $12/lb.
After butchering, 7.5 lbs are usable.
What is the cost per usable pound?