Control FC Formulas Word Scramble
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| Question | Answer |
| What is the formula for figuring Cost of Food Sold? | (Opening Inventory + Purchases = Total Food Available) - Closing Inventory = Cost of Food Sold |
| How does one calculate Food Cost Percentage? | Food Cost ÷ Sales = Food Cost Percentage |
| What are the three methods for figuring the selling price of an item? | 1. Texas Restaurant Association (TRA) Markup method 2. The Factor Method 3. Markup on Cost Method |
| What is the advantage of using the TRA Markup Method? | Can be modified to meet changing circumstances becasue it takes into account sales, costs, and profit. |
| What is the formula for figuring the EP amount needed? | EP amount needed ÷ Yield percentage = AP amount |
| How is Inventory Turnover figured? | 2 Step process: Step 1 Find Average inventory: Opening Inventory + Closing Inventory ÷ 2 = Average Inventory |
| How is Inventory Turnover figured? | 2 Step process: Step 2 Cost of food sold ÷ Average Inventory = Inventory Turnover rate |
| What corrective action might be taken to REDUCE FOOD COST? | 1. Reduce portion size 2. Replace food item with a more cost-effective ingredient. 3. Feature items with higher profit margins. 4. Raise menu prices |
| What corrective action might be taken to control FOOD WASTE? | 1. Monitor portion control 2. Monitor food storage and rotation 3. Monitor food ordering 4. Imporve communication to reduce production errors |
| What corrective action might be taken to control INVENTORY COST? | Order appropriate quantities--Avoid having too much or too little in storage. |
| What corrective action might be taken to reduce LABOR COST? | 1. Reduce number of employees on schedule 2. Ask employees to end their shifts early. 3. Schedule cross-trained staff. |
| COST CONTROLS are needed in every state of operations. True or False? | True |
| Name 6 areas of the operation that must have cost contols? | 1. Menu 2. Purchasing 3. Receiving 4. Storage 5. Production 6. Service |
| What are the two largest costs in a restaurant that management must control? | Cost of Food. Cost of Labor. |
| What is the best way to tell at a glance how an operation is performing? | Reading the Income Statement |
| Opening Inventory is the same number as the Closing Inventory for the previous period. True or False? | True |
| A Standardized Recipe is a key tool in the process of controlling food costs. True or False? | True |
| How to figure Yield Percentage? | EP Weight ÷ AP Weight = Yield % |
| How to determine how much to purchase to produce a given number of servings? | EP needed ÷ Yield % = AP needed |
| Explain how the TRA method of Markup is calculated. | Using percentages, add labor expenses, all other expenses except food cost, and profit; subtract total from 1.00 = divisor. Divide portion cost of item by divisor to reach selling price. |
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kalimu12
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