AHLEI Exam Review

Which of the following statements about area managers in multi-unit organizations is FALSE? a. area managers help unit managers create company policies b. area managers serve as "linking pins" between higher levels of management and unit managers c. area managers typically meet with unit managers at least monthly, if not more frequently d. area managers typically supervise between 2 and 15 unit managers

a

Labor standards should be determined: a. by individual b. by shift c. by position d. by shift and position

d

Given the following information, use the weighted average method to calculate the value of inventory at the end of the month: Beginning Inventory 50 cases @ $30/case Purchases 30 cases @ $27/case Ending Inventory 45 cases a. $1,299 b. $1,553 c. $1,869 d. $2,310

a. $1,299 1500 + 810 = 2,310 2,310 / 80 = 28.88 45*28.88 = 1,299

A chicken dinner has a standard food cost of $3.50. If a 30-percent food cost is desired, what would be the base selling price using the ingredients mark-up method? a. $11.67 b. $12.60 c. $14.76 d. cannot be determined

a. $11.67

Lisa, the food and beverage manager at the Great Steakhouse, traced last month's excessive food costs to more than a dozen steaks unaccounted for in production areas at the end of several shifts throughout the month. Which of the following production control procedures would have helped Lisa detect the problem sooner? a. Match issue and production records with unit sales records on a daily basis. b. Put unused items withdrawn from storage back in storage and re-issue the items when necessary. c. Accurately complete leftover reports and use them to fine-tune the quantities of items prepared. d. Require that no item be discarded without prior management approval.

a. Match issue and production records with unit sales records on a daily basis.

Which one of the following theft situations can be prevented by routinely matching requisition slips with guest checks? a. a server deleting items from a guest check b. a kitchen cook taking expensive cuts of meat from a storage area c. a server taking an order prepared for another server d. a server copying a guest's credit card number and using it to purchase goods at a different establishment

a. a server deleting items from a guest check

The principal benefit of point-of-sale technology to a food and beverage operation is its: a. ability to track, record, and provide detailed financial information. b. efficiency in tracking guest reservations and matching reservation times with table assignments. c. speed and accuracy in calculating guest check totals and making change for customers. d. ability to control deliveries to and issues from food storage areas.

a. ability to track, record, and provide detailed financial information.

Which of the following is a support center within a hotel? a. accounting department b. the banquet operation c. the rooms department d. room service

a. accounting department

When employing a shopper service, a food and beverage manager should: a. alert employees that a shopper service is routinely used to monitor control procedures b. make sure the shopper doesn't know the procedures to be followed by the operation's staff c. select a shopper who is known to employees d. direct the shopper to observe only those employees suspected of theft

a. alert employees that a shopper service is routinely used to monitor control procedures

In relation to the food service purchasing cycle, which of the following positions is generally responsible for completing an issue requisition when items are needed in food production areas? a. chef b. purchasing agent c. receiving agent d. storeroom clerk

a. chef

Effective control systems can help food and beverage managers: a. identify mistakes and plan tactics to correct them. b. create a mission statement. c. identify new menu items to offer. d. define strategic objectives.

a. identify mistakes and plan tactics to correct them.

The easiest to use source of information for standard (expected) food and beverage costs is: a. industry averages b. past financial statements c. operating budgets d. in-house standard costs

a. industry averages

Which of the following is NOT a food and beverage production control tool? a. purchase order b. purchase specification c. standard yield d. standard portion size

a. purchase order

When revenues are being projected, which of the following factors assumes that past trends are good predictors of future growth? a. revenue history b. unusual events such as roadwork or renovation c. competitive analysis d. expense history

a. revenue history

Which of the following standard cost control tools defines the net weight or volume of a food item after it has been processed according to established standard production procedures outlined in the standard recipe? a. standard yield b. standard recipe c. standard portion size d. standard portion cost

a. standard yield

Which of the following food and beverage positions is most likely to be classified as variable labor? a. executive chef b. servers c. supervisor d. manager

b

At the Virtual Café, the average price per mean sold is $15 with an average variable cost of $7. Fixed costs for July are expected to be $30,000. If the restaurant manager expects to sell 5,000 meals in July, the next income (or loss) for the month would be: a. $25,000 net income b. $10,000 net income c. $0 (break even) d. $10,000 net loss

b. $10,000 net income

The China Town Restaurant uses the server banking system. Given the following information, what is the cash due from the server, including the initial bank, before paying out charged tips? Opening Cash Bank $50 Total Sales from Guest Checks $250 American Express Charges $35 VISA Charges $112 China Town Gift Certificate $20 Complimentary Dinner $25 a. $58 b. $108 c. $133 d. $153

b. $108

Given the following information, calculate the basic monthly cost of sales: Beginning Inventory $140,400 Purchases $90,500 Ending Inventory $120,000 a. $90,500 b. $111,000 c. $120,000 d. $170,000

b. $111,000

To produce a desired yield of 20 pounds from a standard recipe with a standard yield of 5 pounds, the amount of each recipe ingredient used should be multiplied by: a. 5.0 b. 4.0 c. 0.4 d. 0.25

b. 4.0

Which of the following statements about inventory turnover for food and beverage operations is TRUE? a. The value of goods in inventory is typically calculated on a daily or weekly basis. b. An inventory turnover rate measures the number of times in a given period that inventory is converted into revenue. c. As the inventory turnover rate decreases, less money is being invested in inventory. d. A sharp decrease in the inventory turnover rate may result in stockouts.

b. An inventory turnover rate measures the number of times in a given period that inventory is converted into revenue.

Which one of the following represents an inventory rotation method by which products held in inventory the longest would be the first to enter the production areas? a. ABCD system b. FIFO (first in, first out) c. Weighted average system d. LIFO (last in, first out)

b. FIFO

Which of the following terms describes a series of records, documents, or reports that trace the flow of resources through an operation? a. purchase specification b. audit trail c. delivery invoice d. inventory checklist

b. audit trail

Which of the following is an effective cash control procedure for most food and beverage operations? a. staff members assigned responsibility to open the mail should also make bank deposits b. bank deposits of revenue derived from nonrecurring transactions, such as the sale of equipment, should be made separately from bank deposits of cash from operations c. minor expenses should be paid with cash from daily operations d. authority for managing a petty cash fund should be divided among several employees

b. bank deposits of revenue derived from nonrecurring transactions, such as the sale of equipment, should be made separately from bank deposits of cash from operations

Which of the following procedures will help prevent bartenders from bringing their own bottles into a food and beverage establishment and selling their own liquor and keeping the revenue? a. keeping beverage inventory areas locked at all times b. bottle marking c. carefully reviewing beverage requisition forms d. establishing accurate par levels

b. bottle marking

Food and beverage managers try to verify information provided on an employment application form by: a. administering a selection test b. checking references c. allowing supervisors to interview applicants d. providing employee orientation schedules

b. checking references

Which of the following types of food and beverage operations faces the greatest challenge in relation to food transport and delivery systems? a. freestanding restaurant b. hotel food service c. cafeteria food service d. concession at sports facilities

b. hotel food service

The Dino Diner is a 30-unit restaurant chain that caters to families with children. To help unit managers recruit and select job applicants who can work well with children, the corporate executive team developed a list of personal qualities for managers to look for when hiring job applicants for open server positions and distributed it as: a. job analysis b. job specification c. performance appraisal form d. job description

b. job specification

Revenue reports generated by automated food and beverage operations enable managers to: a. accurately staff variable labor positions b. measure the sales performance of menu items c. identify food production inefficiencies d. match requisition slips with guest checks

b. measure the sales performance of menu items

Which of the following is an example of an internal factor influencing decisions to change a menu? a. consumer demand b. menu mix c. supply levels d. competition

b. menu mix

The first step in the process for budgeting for food and beverage operations is to: a. set profit requirements b. project revenues c. estimate expenses d. predict cash needs

b. project revenues

Which of the following is an advantage of an automated cashier banking system? a. customers are able to use credit cards to pay guest checks b. they eliminate the possibility of employee theft c. the cashier does not have to key in each item from every guest check d. they eliminate the need for managers to reconcile cash drawers at the end of shifts

b. they eliminate the possibility of employee theft

Which one of the following factors would most likely lead to cost variances that need to be investigated? a. more customers buying higher cost items b. unaccounted for revenue c. a significant increase in food and beverage purchase prices d. more customers buying lower cost items

b. unaccounted for revenue

Given the following information, use the LIFO method to calculate the value of inventory at the end of the month: Beginning Inventory 40 cases @ $25/case Purchases 25 cases @ $27/case Ending Inventory 55 cases a. $675 b. $1,375 c. $1,405 d. $1.485

c. $1,405 40*$25= 1000 15*$27= 405 1000+405= 1,405

The food cost of a menu item is $3.85 and its labor cost per guest is $2.95. If the desired prime costs percentage is 60 percent, what would be the base selling price of the item using the prime costs pricing method? a. $4.92 b. $6.42 c. $11.33 d. $17.00

c. $11.33

A restaurant wastes $600 each month because of poor purchasing practices. If the operation's budget targets a profit of 15 percent of revenues, how much additional revenue must be generated by year's end to recoup the $600 of wasted resources each month? a. $4,000 b. $24,000 c. $48,000 d. $52,000

c. $48,000 600*12=7,200 7,200/.15= $48,000

If the AP price for a food item increased to $4.45 per pound and the cost factor for the item is 2.1, what is the new cost per servable pound? a. $2.13 b. $6.58 c. $9.35 d. $11.45

c. $9.35

The Bay Restaurant uses the weighted average time series method to estimate food production requirements. Given the following information about red snapper dinners sold on Wednesdays, how many red snapper dinners should production areas be prepared to produce for the upcoming Wednesday? a. 70 b. 73 c. 78 d. 82

c. 78

Which of the following statements about inventory control systems is TRUE? a. A physical inventory system indicates how much of each product is on hand by maintaining a running balance of all products entered into and issued from storage areas. b. Staff members who maintain an operation's perpetual inventory records should also perform the physical count of items in inventory. c. A perpetual inventory system does not eliminate the need for a physical count of items in storage. d. A physical inventory of all products in storage areas is generally made once during a fiscal year.

c. A perpetual inventory system does not eliminate the need for a physical count of items in storage.

How would fresh poultry be categorized in an ABCD inventory classification system? a. Class A: high in perishability and high cost per serving b. Class B: low in perishability and high in cost per serving c. Class C: high in perishability and low in cost per serving d. Class D: low in perishability and low in cost per serving

c. Class C: high in perishability and low in cost per serving

Given the following information, what is the base selling price of the menu item using the prime costs pricing method? Menu Item Food Cost $3.40 Annual Labor Cost $200,000 Annual Number of Expected Guests 60,000 Desired Prime Costs Percentage 63% a. $5.29 b. $5.40 c. $8.43 d. $10.68

d. $10.68

Which of the following statements about production planning is true? a. A master food production planning worksheet is used to determine the amount of menu items ingredients to purchase for routine operations. b. Production planning takes place only when special events such as banquets and catered events are anticipated. c. Production planning for banquet functions should provide purchasing staff with a two-day notice for any special purchasing requirements. d. all of the above

c. Production planning for banquet functions should provide purchasing staff with a two-day notice for any special purchasing requirements.

Which of the following statements about the role of standards in the control process is TRUE? a. Industry averages are the best source of information for establishing standards. b. Financial standards should always be set on the basis of past financial statements. c. Standards can be established for revenue goals and sales targets as well as for employee attendance and safety records. d. Standards are effective only if they state an expected level of performance for individual employees.

c. Standards can be established for revenue goals and sales targets as well as for employee attendance and safety records.

Comparisons between standards and actual operating results should be made: a. only when problems are suspected b. during the same time frames (e.g. monthly). c. as soon as possible after actual costs are known. d. periodically, but infrequently.

c. as soon as possible after actual costs are known.

When evaluating the effectiveness of actions taken to correct a cost control problem, it is important that managers: a. determine whether another part of the control system has been negatively affected by the corrective action taken b. choose an appropriate time frame for the evaluation c. both of the above d. none of the above

c. both of the above

Which of the following statements about revising performance standards is TRUE? a. only the best employees should be able to consistently attain performance standards b. before implementing a revised performance standard, it should be tested with every employee c. employees who actually perform the job are often the best source for suggested improvements d. generally, when work problems arise, there is only one way to resolve them

c. employees who actually perform the job are often the best source for suggested improvements

Types of corrective action that are most successful in controlling food and beverage operations are those which: a. set standards that are easier to attain b. cost less c. reduce variances d. have proven successful in the past

c. reduce variances

In relation to the purchasing function, the term quality refers to: a. highest price b. popularity of a menu item c. suitability for intended use d. standardized inspection grades

c. suitability for intended use

If the standard portion cost for a menu item is $4.20 and 60 portions are prepared, what is the total ingredient cost? a. $125 b. $143 c. $225 d. $252

d. $252

Which of the following statements about hotel food and beverage operations is TRUE? a. Hotel marketing efforts focus exclusively on attracting hotel guests to dine at the property's food and beverage outlets. b. Room service is typically the most profitable food service operation in a hotel. c. The restaurant manager in a hotel has greater decision-making powers than a manager of a freestanding restaurant. d. Catering responsibilities in a hotel are generally a function of the marketing and sales department.

d. Catering responsibilities in a hotel are generally a function of the marketing and sales department.

If a bartender does not use standard portion control tools, the result may be: a. a decrease in issuing activity b. an overage on the bartender's cash report c. an increase in the bar par d. a variance from expected beverage costs for the bartender's shift

d. a variance from expected beverage costs for the bartender's shift

Most point-of-sale systems produce an outstanding checks report that lists: a. all guest check that have not yet been issued to servers b. all food requisition slips that have not been matched with items recorded on guest checks c. all guest checks that have exceptionally high sales per server statistics d. all guest checks that have not been settled

d. all guest checks that have not been settled

Which of the following resources is available in a limited supply to managers of food and beverage operations? a. time b. facilities c. money d. all of the above

d. all of the above

Why are multi-unit organizations popular in the restaurant industry? a. They provide brand recognition. b. Greater opportunities are available to market throughout broad geographic regions. c. Business financing is easier to obtain. d. All of the above are true of multi-unit organizations.

d. all of the above

When developing a compensation structure, managers of food and beverage operations should remember that: a. paying lower wages usually results in employees working harder in order to advance within the organization b. tips paid to bartenders and servers should not be taken into consideration c. employees should generally be paid the same amount in order to prevent tension in the workplace d. compensation should be competitive with potential employers both within and outside the hospitality industry

d. compensation should be competitive with potential employers both within and outside the hospitality industry

A shopper service is a(n): a. service offered by many businesses to assist guests who are unable to visit the operation in person. b. internet-based buying service that offers managers greater control of the purchasing and receiving function. c. system of supply in which vendors automatically resupply the restaurant on a schedule determined by the food and beverage manager. d. control tactic that involves observing and reporting the actual operations of a business.

d. control tactic that involves observing and reporting the actual operations of a business.

Menu engineering classifies menu items that are low in popularity and low in contribution margin as: a. puzzles b. plowhorses c. stars d. dogs

d. dogs

Costs that remain constant in the short term, even though sales volume may vary, are called _________ costs. a. variable b. mixed c. allocated d. fixed

d. fixed

Which of the following is most likely to be classified as a variable cost? a. general manager's salary b. rent expense c. property taxes d. food costs

d. food costs

Which of the following types of food purchases would most likely be charged to food costs on the day they are received? a. flour b. frozen seafood c. poultry d. fresh produce

d. fresh produce

A system of moving employees among jobs they are able to perform is called: a. job enrichment b. job enlargement c. work simplification d. job rotation

d. job rotation

The new manager at a 125-seat, independently operated restaurant believes that the operation's current cost standards are too high and may perpetuate operational inefficiencies. Information used to develop the operation's current cost standards most likely came from: a. industry averages b. regional averages c. specific property requirements d. past financial statements

d. past financial statements

A formula for producing a food and beverage item is called a(n): a. product specification b. portion control percentage c. algorithm d. standard recipe

d. standard recipe

At 8 o'clock on Thursday evening, the number of guests arriving for dinner at the Great Steakhouse slowed considerably from the night's forecast. To keep labor costs in line, the dining room supervisor asked three servers to clock out before the end of the shift. Transfers of guest checks from these three servers to those remaining on the shift should be approved by: a. the servers accepting the transfers b. the host or hostess c. the dining room supervisor d. the cashier who issued them

d. the cashier who issued them

A stockout can occur as a result of: a. employing a perpetual inventory system b. over-purchasing c. inadequate menu engineering d. under-purchasing

d. under-purchasing

Which of the following types of point-of-sale printers is usually placed at food production areas? a. journal printer b. receipt printer c. guest check printer d. workstation printer

d. workstation printer