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Unit 1
NUTR 471
| Question | Answer |
|---|---|
| If opening inventory is $10,000 and purchases amount to $7,500, and the closing inventory is $9,000, what is the cost of food? | (Beginning inventory of $10,000 - Closing Inventory $9,000) + Purchases of $7,500 = $8,500. |
| If the actual week’s food cost is $3,000 and the food cost % is 30, what are the actual sales for the week? | 30% food cost percentage = $3,000 food cost / X (Sale/income for the week = $10,000); food cost divided by food cost percentage |
| What is the labor turnover rate if 6 employees in a department of 55 were terminated and replaced? a-12% b-10% c- 9% d-11% | D |
| What is the food cost percentage if the cost of food is $325 and the income is $865? a- 38% b- 36% c- 34% d- 32% | A |
| An 8 lb. roast beef cost $2.79/lb. The edible portion is 65%. What is the AP price of the roast? a- $21.19 b- $22.00 c- $22.32 d- $23.04 | C |
| Find cost per meal if you serve 120,000 meals, spend $46,000 in food purchases and $1250 worth of food was removed from the inventory. a- $.39 b- $.42 c- $.37 d- $.43 | A |
| How many meals were served per labor minute if 34 FTE produced 3800 meals in one 40 hour week? a- 2.79 b- 0.05 c- 1.12 d- 0.25 | B |
| A business pays 4% of its income as rent ($1200), 70% towards labor and food costs, and $2500 towards other monthly expenses. How much profit does this business make per month? a- $6000 b- $4200 c- $5300 d- $7200 | C |
| The hospital budget for the 1st 6 mos is set for an 80% occupancy rate, 2nd 6 mos occupancy rate of 60%. What would the food cost budget be for the second 6 months? Food cost 30,000 Labor cost 25,000 Operating costs 24,000 | $22,500 |
| When finding the labor turnover rate in one period look at the # of: a- Employees @ start of the period and the # of new employees b- Employees @ start of the period and the # who left c- Employees @ the end of the period and the # of new employees | C |
| In a hospital with 300 patients, it takes 14 minutes to prepare one meal. How many FTEs are needed per week? a- 12 b- 37 c- 46 d- 10 | B |
| A business pays 3% of its income as rent ($1,500). 65% towards labor and food costs, and $2,800 towards other monthly expenses. How much profit does this business make per month? a- $13,500 b- $10,300 c- $15,400 d- $7,000 | A |
| A foodservice operation uses hamburger patties at an average rate of six cases per day. It takes 3 days after an order is placed to receive the order. The reorder point would be how many cases? a- 30 cases b- 6 cases c- 20 cases d- 18 cases | D |
| What is the formula for food cost? | Food purchases + foods removed from inventory OR (Beginning inventory - ending inventory) + food purchases |
| What is the formula for food cost percentage? | Tells you % of income spent on food Food cost percentage = daily food cost/daily income |
| What is the formula for cost per meal? | food cost per month/# meals per month |
| What is the labor cost percentage formula? | labor cost / total sales generated |
| What is the formula for profit margin? | Used to assess overall financial efficiency, reflects portion of sales volume remaining after paying all expenses; net income divided by net sales |
| What is the formula for net profit? | (profit after ALL expenses have been paid)/sales dollars (revenue) |
| What is the cost of sales formula? | cost of the raw food and beverage sold |
| What is the formula for gross profit? | profit shown after deducting raw food and beverage (cost of sales) from sales (revenue) |
| What is the formula for the break even point? | BE= FC / (1-VC%) Break Even – Point at which total cost and total revenue are equal; there is no net loss or gain |
| What are fixed costs? | Business costs, such as rent, that are constant whatever the quantity of goods or services are produced |
| What are variable costs? | Cost that varies with the level of output |
| What is the formula for labor turnover rate? | [# of employees terminated and replaced/total positions in the department] x 100 |
| What is FTE? | Full time equivalent (FTE): Absolute FTE = minimum number of employees needed to staff the facility; counts productive hours (hours actually worked) Adjusted FTE = takes into account the benefit days and days off |
| What are the FTE formulas? | FTE/day = (labor hrs worked/day)/8 hr normal workload FTE/week = (labor hrs worked/week)/40 hr normal workload FTE/year = (labor hrs worked that year)/2080 |
| The menu pricing method that uses desired food cost percentage in determining the menu sales price is termed the ________ pricing method. | factor |
| Jim had a beginning inventory of $5,500. During the month of April he purchased $4,000 of food and had an ending inventory of $3,800 at the end of the month. His sales for April were $8,750. What was his inventory turnover? | 1.2 times |
| The denominator used when calculating a common size income statement is | total sales |
| One difference between a for-profit and a not-for-profit organization is: | excess revenue over expenses, in a for-profit organization can go to the organization's owners, in a not-for-profit organization this excess goes back into the organization |
| The ________ says that a company who chooses to use the LIFO method for valuing their inventory must use that same method each year | consistency principle |
| Typically the first step in the budget process is to compile the ________. | sales budget |
| A pro forma income statement: | forecasts revenue and expenses for a future period |
| Assets and liabilities are a part of which financial statement? | balance sheet |
| Calculation of the current ratio would involve which two pieces of data? | current assets and current liabilities |
| Which of the following costs is typically the highest in a foodservice operation? | labor |
| Ratios that are used to examine an establishment's ability to meet its long-term financial obligations are termed ________ ratios. | solvency |
| Perception of value: | is what customers believe a menu item is worth |
| A foodservice operation with a food cost of 40% has food costs that are equal to 40% of ________. | revenue |
| Which of the following statements is true? | Total fixed costs do not vary with changes in sales volume |
| Cash, marketable securities, and accounts receivable are all categorized as ________ on a balance sheet. | current assets |
| A turkey sandwich has a food cost of $.75 and is sold for $2.25. If the manager wanted to achieve a 40% food cost, which of the following should occur? | The price of the sandwich should be decreased |
| Data from the previous week indicate that she served 7,500 meals. Her timecards indicated that employees worked a total of 625 hours for the week. What were labor minutes per meal for Sarah's operation? | 5 |
| Sam Jones owns a local restaurant. He buys steaks from the restaurant to serve his family at home for dinner. Sam should record this sale in the restaurant's books because of the: | business entity principle |
| The breakeven point is where: | total revenue equals total costs |
| The financial statement that shows financial position at a point in time is the ________. | balance statement |
| A value stream map is commonly used in benchmarking one operation with another. | False |
| Common to most total quality management definitions is a focus on empowerment of employees. | True |
| ________ often is referred to as the 80-20 rule because 80% of a given outcome typically results from 20% of an input. | Pareto analysis |
| A process improvement tool that provides a graphical record of process improvement efforts over a period of time is termed a ________. | control chart |
| ________ is defined as the degree to which managers allow employees to act independently within their job description. | Empowerment |
| The radical redesign of business processes for dramatic improvement is termed ________. | reegineering |
| Process improvement programs are part of ________ in the foodservice systems model. | control |
| ________ is a procedure that defines and ensures maintenance of standards within prescribed tolerances for a product or service. | Quality assurance |
| A data driven technique for eliminating defects in a process is referred to as ________. | six sigma |
| The process that includes the concept of providing a product or service only when a customer wants it is termed ________. | lean |
| According to the American Society for Quality, which of the following is NOT a characteristic of quality? | Quality is a program |
| The key to a successful quality assurance program is continuous monitoring and evaluation. | True |
| W. Deming is most known for his work in which country? | Japan |
| An Ishikawa or fishbone diagram provides a way to illustrate factors that may influence or cause a given outcome. | True |
| The group that serves as an accreditation agency that reviews voluntary programs of quality improvements in patient care in hospitals is: | The Joint Commission |
| A model for coordinating process improvement efforts is a ________. | Plan-Do-Act-Check cycle |
| The 14-point system to help companies improve their quality was created by ________. | Deming |
| Quality should be defined by the manager, not the customer. | False |
| The Keys to Excellence is a quality improvement program for hospital foodservice operations. | False |
| What is the only hotel company to win the Baldrige Award on two occasions? | Ritz Carlton |
| What steps are followed to open a business? | Evaluation (research)-> Preparation (category description) -> Justification (purpose/need) -> Implementation (use budget/resources) -> Control (auditing) |
| What are the three types of cash flow? | Operating, cash, capital |
Created by:
pricel