ha355 final exam

50%

A manager employed 100 workers at the beginning of an accounting period, and 120 workers at the end of the period. During the accounting period 50 employees voluntarily left their employment and 5 employees were terminated. What was this manager's overall employee turnover rate in the accounting period? A. 40% B. 50% C. 400% D. 500%

5 servers and 3 cooks

A manager forecasts that 150 guests will be served tomorrow. The manager knows that one server can provide high quality service for 30 guests and one cook can prepare high quality food for 60 guests. How many servers and cooks should be scheduled for tomorrow? A. 5 servers and 3 cooks B. 3 servers and 2 cooks C. 3 servers and 3 cooks D. 5 servers and 2 cooks

70

A manager forecasts that 80 servings of Sea Bass will be sold today. The manager carried over 15 usable servings of sea bass from yesterday and wishes to maintain a margin of error of 5 servings. What should be the number of Sea Bass portions produced today? a. 50 b. 60 c. 70 d. 80

$17,000

A manager had beginning beverage inventory of $15,000 for an accounting period and an ending beverage inventory of $19,000 for the period. What was the manager's average beverage inventory value for the period? A. $16,000 B. $17,000 C. $16,500 D. $17,500

$27.75

A manager has 1.5 cases of canned green beans in storage. Each case cost $18.50. What is the total inventory value of this manager's canned green beans? a. $18.50 b. $12.33 c. $42.33 d. $27.75

$40,000

A manager incurred $8,000 in Cost of Beverage Sold during an accounting period. The manager's beverage cost percentage for the period was 20%. What were the manager's beverage sales for the period? a. $35,000 b. $25,000 c. $30,000 d. $40,000

$15.00

A manager purchases fresh fish for $9.60 a pound. After cleaning and filleting the product the waste percentage for the fish is 34%. What is the EP cost per pound for this fish item? a. $20.00 b. $22.50 c. $15.00 d. $17.50

Reduce the item's prominence on the menu

A manager utilizes contribution margin matrix analysis to evaluate her menu. What would be a good marketing strategy to use on an item she determines is very popular but has a low contribution margin? A. Promote the item well B. Reduce the item's prominence on the menu C. Remove the item from the menu D. Reduce the item's price

True

A manager's operation achieved $18,000 in sales last month. This month the operation achieved $19,080 in sales. The operation's sales increase this month when compared to last month was 6% True or false?

$75,600

A manager's operation currently has an average sale per guest of $9.00. For the upcoming accounting period, the manager predicts 8,000 guests will be served at a check average 5% higher than the current average sale per guest. What will be this manager's revenue forecast for the upcoming period? a. $82,800 b. $72,000 c. $75,600 d. $79,200

19,440

A manager's operation served 18,000 guests last month. The manager forecasts an 8% increase in guests to be served next month. If her forecast is correct, how many guests will the manager serve next month? a. 18,440 b. 19,440 c. 17,440 d. 20,440

25%

A manager's sales this month were $15,000. Last month's sales were $12,000. What was this manager's sales percentage increase for this month? a. 25% b. 15% c. 10% d. 20%

$16.90

A manager's standardized recipe costs $58.80 to produce and it yields 12 portions. The manager wants to achieve a $12.00 contribution margin when selling the item produced by the recipe. What should be the manager's selling price for the item? a. $16.90 b. $13.90 c. $14.90 d. $15.90

$12.60

A manager's standardized recipe costs $73.50 to produce and it yields 15 portions. The manager sells the item for $17.50. What is this item's contribution margin? a. $11.60 b. $12.60 c. $13.60 d. $14.60

$0.49

A manager's standardized recipe for chili cost $56.00 to produce. The recipe yields 100 portions. Each portion is 8-ounces. What would be the cost per portion if the manager reduces the portion size of this item from 8-ounces to 7-ounces? a. $0.55 b. $0.51 c. $0.53 d. $0.49

1.7

A manager's standardized recipe makes 200 portions. The manager needs to make 120 portions. What is the recipe conversion factor the manager should use to adjust this recipe? a. 6.0 b. 0.6 c. 16.7 d. 1.7

$5.50

A menu item costs a manager $2.20 to produce. The manager wants to achieve a 40% food cost on the item. What should be this item's' selling price? a. $6.00 b. $5.50 c. $5.00 d. $4.50

627.38

A menu item sells for $11.95 and has a 40% food cost. Variable costs for the item are 25% and 250 servings are sold. What is the item's goal value? A. 627.38 B. 590.34 C. 543.23 D. 435.98

True

A menu item's popularity index will always fall between 0 and 1.0. True or false?

5000

A restaurant has a check average of $12 and has variable costs per cover of $4.80. If its fixed costs are $36,000 each month, what is the number of covers that must be sold to reach its monthly break-even point? A. 5000 B. 4500 C. 1500 D. 3750

$120,000

A simplified income statement for The Tampopo Noodle House is shown below: If the desired profit for The Tampopo Noodle House was 15%, what amount of profit should it have made on $800,000 revenue? a. $140,000 b. $100,000 c. $120,000 d. $160,000

37.5%

A simplified income statement for The Tampopo Noodle House is shown below: What was the food and beverage cost percentage achieved by The Tampopo Noodle House? a. 42.9% b. 27.5% c. 22.9% d. 37.5%

$100,000

A simplified income statement for The Tampopo Noodle House is shown below: What was the profit amount achieved by The Tampopo Noodle House? a. $100,000 b. $75,000 c. $125,000 d. $50,000

12.50%

A simplified income statement for The Tampopo Noodle House is shown below: What was the profit percentage achieved by The Tampopo Noodle House? a. 12.50% b. 50.25% c. 37.50% d. 6.25%

$700,000

A simplified income statement for The Tampopo Noodle House is shown below: What were the total expenses of The Tampopo Noodle House? a. $650,000 b. $700,000 c. $600,000 d. $750,000

$1.25

A standardized recipe yields 55 servings and costs $68.75 to produce. What is the portion cost of this recipe? a. $1.45 b. $1.05 c. $0.80 d. $1.25

True

A standardized recipe's yield identifies the number of portions the recipe produces True or false?

True

A variable other expense increases as sales volume increases and will decrease as sales volume decreases True or false?

how much the guests spend in the same time periods

A weighted average sale per guest weighs the number of guests served in different time periods with a. the amount of profit made in the same time periods b. the total amount of expense incurred in the same time periods c. how many hours the operation is open in the same time periods d. how much the guests spend in the same time periods

True

Accurate purchasing requires the existence and use of standardized recipes. True or false?

$1,500

An operation's Beginning Inventory for an accounting period equaled $15,000. Ending Inventory for the period equaled $14,000, Purchases equaled $21,500 and Total Cost of Sales was $21,000. What was the amount of this operation's Employee Meals in the period? a. $1,000 b. $1,500 c. $2,000 d. $2,500

If servers are given an upsell goal and the effort is made to turn tables more quickly.

As ciscussed in class, RevPASH as a metric to improve a Restaurant's financial results, is only effective if there are which two strategies implemented? A. If servers are given an upsell goal and the effort is made to turn tables more quickly. B. Minimize the number of hours the restuarant is open and limit the number of covers each operational hour C. Revpash is calculated every day and food prices are increased on the menu D. The restaurant is small in terms of the number of seats and total revenues are significant

True

As described in detail in the article on Restauant Failure Rates, one of the most common reasons for restaurant failures is the impact it has on the family unit? True or false?

True

As discussed in class, considering the equation (Sales-Variable Cost= Contribution Margin), Contribution Margin must be Equal to "profit that also covers all Fixed Expenses" True or false?

$12.00

At the beginning of a buffet meal a manager placed $1,100 worth of food on the buffet line. During the meal another $500 of food was added to the line. At the end of the meal the value of the remaining food was $400. The manager served 100 guests. What was the buffet cost per guest served during this meal period? a. $12.00 b. $13.00 c. $12.50 d. $13.50

$1,900

At the beginning of a buffet meal a manager placed $1,400 worth of food on the buffet line. During the meal another $800 of food was added to the line. At the end of the meal the value of the remaining food was $300. What was the total product cost of the manager's buffet during this meal period? a. $2,200 b. $1,900 c. $800 d. $300

175

Based on its popularity index, what would be the predicted number of Seafood Hot Pots to be sold if management forecasts that 700 guests will be served? a. 175 b. 150 c. 200 d. 225

$7,180

Because of his education and work experience, Nimesh was recently hired as a Food & Beverage Supervisor by the Bombay Adventure Restaurant. One of his first tasks is to forecast his operation's sales for the next six months based on the following information. What is the total estimated dollar increase in sales for the six month period? a. $5,160 b. $7,180 c. $10,320 d. $6,450

$265,180

Because of his education and work experience, Nimesh was recently hired as a Food & Beverage Supervisor by the Bombay Adventure Restaurant. One of his first tasks is to forecast his operation's sales for the next six months based on the following information. What is the total revenue forecast for the six-month period? a. $263,160 b. $265,180 c. $267,180 d. $269,320

2.78%

Because of his education and work experience, Nimesh was recently hired as a Food & Beverage Supervisor by the Bombay Adventure Restaurant. One of his first tasks is to forecast his operation's sales for the next six months based on the following information. What is the weighted average percentage increase in sales for the six month period? a. 1.78% b. 3.15% c. 2.15% d. 2.78%

True

Calculating sales variance is extremely helpful when comparing the financial performance of operations with very different volume levels True or false?

food, labor, all other expenses, and to provide for a profit

Contribution margin is the amount that a menu item "contributes" to pay for a. labor, all other expenses, and to provide for a profit b. food and labor c. food, labor, all other expenses, and to provide for a profit d. food

$11.20

On Monday a manager served 200 guests at an average sales per guest of $10.50. On Tuesday the manager served 175 guests at an average sales per guest of $12.00. What was the managers average sales per guest for the two-day period? a. $11.15 b. $11.20 c. $11.30 d. $11.25

4

On Monday, a manager's operation generated revenue of $1,200. The manager served 100 guests, used 25 total hours of labor, and had a labor cost of $300. What was the manager's number of guests served per labor hour on Monday? A. 20 B. 40 C. 2 D. 4

$48.00

On Monday, a manager's operation generated revenue of $1,200. The manager served 100 guests, used 25 total hours of labor, and had a labor cost of $300. What were the manager's sales per labor hour on Monday? A. $52.00 B. $54.00 C. $50.00 D. $48.00

usage of labor

Productivity ratios are used to measure a manager's A. Usage of labor B. Profit dollars C. How hard an employee works D. A and C

True

Sales mix is defined as the series of consumer purchasing decisions that result in a specific food or beverage cost percentage. True or false?

80%

Sam Hunky is a foodservice manager. Last month his Food Expense equaled $30,000, his Labor Expense equaled $26,000, and his Other Expenses equaled $12,000. His Revenue equaled $85,000. What was his total expense percentage? a. 45% b. 85% c. 80% d. 40%

False

The daily sales data used for calculating a rolling average is identical to the data used to calculate a fixed average True or false?

$3.45

The food service manager in a military base served 3,200 meals in an accounting period and incurred a total Cost of Food Sold of $11,040. What was this manager's Cost Per Meal for the period? a. $3.45 b. $4.90 c. $3.15 d. $2.90

True

The four sections of the USAR are arranged in order on the income statement from most controllable to least controllable. True or false?

Revenue will increase and expenses will increase

What is the effect on an operation if its manager increases the number of guests served or increases the amount each guest buys? a. Revenue will decrease and expenses will increase b. Revenue will increase and expenses will decrease c. Revenue will decrease and expenses will decrease d. Revenue will increase and expenses will increase

1.00 (÷) Desired Product Cost % = Pricing Factor

What is the formula managers use to calculate a pricing factor used to develop menu prices? a. 1.00 (+) Desired Product Cost % = Pricing Factor b. 1.00 (÷) Desired Product Cost % = Pricing Factor c. 1.00 (x) Desired Product Cost % = Pricing Factor d. 1.00 (-) Desired Product Cost % = Pricing Factor

(This period sales - Last period sales) ÷ Last period sales = Sales variance %

What is the formula managers use to calculate a sales variance percentage? A. (Last period sales - This period sales) x Last period sales = Sales variance % B. (This period sales - Last period sales) x Last period sales = Sales variance % C. (This period sales - Last period sales) ÷ Last period sales = Sales variance % D. (Last period sales - This period sales) ÷ Last period sales = Sales variance %

Fixed Costs (÷) Contribution Margin % = Break-Even Point in Sales

What is the formula managers use to calculate their break-even point in sales? A. Contribution Margin % (÷) Fixed Costs = Break-Even Point in Sales B. Contribution Margin % (-) Fixed Costs = Break-Even Point in Sales C. Fixed Costs (x) Contribution Margin % = Break-Even Point in Sales D. Fixed Costs (÷) Contribution Margin % = Break-Even Point in Sales

weighing

What is the most accurate way to determine the amount of ingredients to be used in standardized recipes? a. Counting b. Portioning c. Weighing d. Sorting

0.40

What is the popularity index for Vegetable Lo Mein ? a. 0.40 b. 0.30 c. 0.45 d. 0.35

Price blending

What is the term used to describe the pricing of products with very different individual cost percentages in a way designed to achieve a favorable overall product cost percentage? a. Prix fixe pricing b. Value pricing c. Price blending d. Ambience pricing

5.0

What pricing factor would mangers use if they want to establish drink prices that will yield a 20% beverage cost? a. 5.0 b. 5.5 c. 4.5 d. 4.0

Food costs increase and labor costs decrease

What should be the normal result when managers buy convenience items rather than make those same items from scratch? A. Food costs decrease and labor costs increase B. Food costs increase and labor costs increase C. Food costs decrease and labor costs decrease D. Food costs increase and labor costs decrease

Total Cost of Sales would be understated

What would be the effect on his Cost of Sales if a manager accidentally overstated the value of his operation's ending inventory? a. Total Cost of Food Available for Sale would be understated b. Total Cost of Sales would be overstated c. Total Cost of Sales would be understated d. Total Cost of Food Available for Sale would be overstated

Increasing the historical cost basis by inflation.

When creating a budget for the following full year, one of the first considerations when budgeting costs should be A. Increasing the historical cost basis by inflation. B. increasing the cost by 100% of the increase in sales. C. Keeping cost margins flat D. not increasing the cost at all, year over year.

True

When expressed as a percentage of sales, a mixed expense will decrease as sales increases. True or false?

portion cost in relationship to selling price is of most importance.

When management uses a target food or beverage cost percentage to price menu items, it believes a. contribution margin in relationship to selling price is of most importance. b. profit percentage in relationship to selling price is of most importance. c. item popularity in relationship to selling price is of most importance. d. portion cost in relationship to selling price is of most importance.

Food cost

In what cost category do managers record non-alcoholic beverages expenses? a. Food cost b. Revenue c. Beverage cost d. Other expenses

False

It costs an operation $3.00 to produce a menu item. The operation sells the item for $12.00. As a result, the food cost percentage for this item is 20%. True or false?

20%

Last month a manager's operation generated $200,000 in food sales and $50,000 in beverage sales. The manager had a cost of sales for beverages of $10,000. What was the manager's beverage cost percentage last month? A. 20% B. 4% C. 40% D. 2%

28.8%

Last year a manager's operation achieved a 28% labor cost on sales of $1,500,000. For next year, the manager anticipates an 8% increase in the prices he will pay for labor. The manager will also increase her menu prices by 5%. What should be the manager's best estimate for next year's labor cost percentage? A. 30.8% B. 28.8% C. 31.8% D. 29.8%

36.75%

Last year a manager's operation achieved a 35% food cost on sales of $800,000. For next year, the manager anticipates a 5% increase in the prices he will pay for food. What should the manager estimate next year's food cost percentage to be if he does not raise his menu prices? A. 36.00% B. 40.75% C. 36.75% D. 40.00%

an operation does not collect revenue on a daily basis.

Monitoring Other Expense Cost Per Guest is especially useful when an A. operation's variable costs exceed its fixed costs. B. operation does not collect revenue on a daily basis. C. operation's fixed costs exceed its variable costs. D. operation collects revenue on a daily basis.

102%

A manager calculated that her attainable product cost for a period was $29,000. Her actual product cost for the period was $29,580. What was the manager's operational efficiency ratio for the period? a. 92% b. 94% c. 104% d. 102%

True

In most cases managers should keep their operations' sales history records for a period of at least two years but 3 years would be better. True or false?

True

A foodservice operation's revenue will vary with both the number of guests visiting the business and the amount of money spent by each guest. True or false?

$1,000

A manager anticipates that 2,000 guests will be served next week. The manager's operation serves 2.5 guests per 1.25 labor dollars expended. What will be the manager's estimated cost of labor next week? A. $800 B. $8,000 C. $5,000 D. $1,000

25%

A bar operation achieved $92,000 in beverage sales for an accounting period. For that period, it had a Beginning Inventory of $25,000. Ending Inventory was $22,000 and beverage purchases equaled $20,000. What was the bar's Beverage Cost percentage for the period? a. 30% b. 15% c. 20% d. 25%

12.5%

A bar operation had total beverage cost of $40,000 for an accounting period. For that period, its beer cost was $5,000, wine cost was $15,000, and spirit cost was $20,000. What proportion of this operation's total beverage cost was its beer cost? a. 14.5% b. 12.5% c. 16.5% d. 18.5%

15%

A manager buys fresh carrots in 20 pound cartons. After the carrots have been cleaned, trimmed, and chopped each carton yields 17 pounds of carrots (EP). What is this manager's waste percentage for fresh carrots? a. 13% b. 15% c. 19% d. 17%

Spending no more than the budgeted dollars less the dollar amount we over spent last month in labor

During the forecasting process, in order to determine the amount that can be spent on labor for the coming month if we spent more on labor than we should have in the previous month, we focus on which of the following? a. The budgeted labor expense for the current month divided by total budgeted sales, less the % of sales we were over in labor expense last month multiplied by the forecasted sales for the current month b. Spending no more than the budgeted dollars less the dollar amount we over spent last month in labor c. The budgeted labor expense for the current month less the labor expense dollars we were over in labor expense last month multiplied by the forecasted sales for the current month d. Whatever the customer service demands indicate our staffing needs to be for the next month

Over by $600

For the first week of the month, a manager's operation generated revenue of $120,000. The manager served 2,500 guests, used 156.25 total hours of labor, and had a labor cost of $12,000. The budget for the week was $122,000, budgeted guest volume was 2,700, budgeted hours of 155, and a labor cost of $11,590, how much did the manager actually over/under spend in labor for the week? A. Over by $159 B. Over by $600 C. Under by $410 D. Over by $410

Spirits

For which products would managers most likely utilize the "empty-for-full" replacement system? a. Spirits b. Keg beer c. Bottled wines d. Boxed wines

45

Given the financial results below, calculate the flow thru percentage (input the result as whole percentage like XX with no % sign and no decimal such as, 32 if the answer was 32.0%):

False

Head size has no effect on the cost per serving of draft beer. True or false?

As often as necessary

How frequently should managers update their operations sales forecast? a. At least once per quarter b. As often as necessary c. At least once per week d. At least once per month

$520,000

In the last quarter a restaurant had management labor costs of $20,000, staff labor costs of $80,000 and employee benefits costs of $30,000. The operation achieved a 25% total labor cost last month. How much revenue did the operation generate in the last quarter? A. $905,000 B. $325,000 C. $520,000 D. $715,000

$264,000

If Budgeted Food sales are $1,000,000 and budgeted Food cost is $220,000, a Budgeted total Cost of Sales of 36% or $360,000, on Forecasted sales of $1,200,000 how much can the restaurant spend on food for the month? a. $264,000 b. $220,000 c. $432,000 d. 36%

True

If a budget was accurate, and the foodservice operator is within reasonable limits of the budget he or she is said to be "in line" with the budget. True or false?

False

In Goal Value Analysis, any menu item with a value over the Total Menu Value benchmark, that items Goal Value equals the sales dollars that it will produce. True or false?

identify the amount of sales revenue needed to avoid an operating loss.

The primary purpose of Cost/Volume/Profit (CVP) analysis is to A. find out which menu items are most profitable. B. forecast future sales more accurately. C. identify the amount of sales revenue needed to avoid an operating loss. D. estimate an operation's income before income taxes.

A and C

The productivity measurement Sales per labor hour is not a great measure of productivity because? A. Sales can swing widely and yet a small variance in the number of hours can mean a signficant labor cost overage B. The premise isn't true, Sales per man hour should be one of the primary productivity measurement used C. Sales per man hour is best used not as a labor productivity measurement but as a data point when there needs to be a big improvement in Sales levels. D. A and C

False

The proper receiving of beverage products requires greater skill on the part of receiving clerks than does the proper receiving of food products. True or false?

True

The sales forecast is the most important financial for operations because it drives the financial decisions of the operation. True or false?

False

The sign of a good foodservice manager is that his or her actual costs are consistently lower than the amounts indicated in their budgets. True or False

False

The two methods used to increase or decrease a standardized recipe's yield are the factor method and the cost method. True or false?

More than 50%

The typical select service hotel should have a flow thru on incremental sales and profit of? a. More than 50% b. 50% c. It depends d. Less than 50%

b. Raise the price of the entree c. Pay the same for the incredients that go into the entree and raise the price of the entree d. Pay less for the ingredients that go into the entree and raise the price of the entree

To automatically get a lower food cost % for an existing entree on the menu without managing any other production factors, what can be done to automatically lower the food cost % of an entree on the menu? Choose all that apply. a. Pay the same for the ingredients that go into the entree and lower the price of the entree b. Raise the price of the entree c. Pay the same for the incredients that go into the entree and raise the price of the entree d. Pay less for the ingredients that go into the entree and raise the price of the entree

Cost of variable labor increases and variable labor cost percentage is unchanged

What are the effects on variable labor cost and on variable labor cost percentage when an operation's sales increase? A. Cost of variable labor increases and variable labor cost percentage increases B. Cost of variable labor increases and variable labor cost percentage is unchanged C. Cost of variable labor decreases and variable labor cost percentage increases D. Cost of variable labor decreases and variable labor cost percentage is unchanged

$0.50

What is a manager's other expense Cost Per Guest for marketing, if sales were $90,000 in a month, 3,000 guests were served, and marketing costs for the month were $1,500? A. $0.50 B. $3.00 C. $5.00 D. $0.30

$4,000

What is its cost of food sold if an operation's Beginning Inventory equals $5,000, Ending Inventory equals $2,000, Purchases equal $1,500 and Employee Meals equal $500? a. $2,500 b. $4,000 c. $1,000 d. $4,500

profit

What is the amount that remains after the product cost of a menu item has been subtracted from the item's selling price? a. Profit b. Product yield c. Portion cost d. Contribution margin

foodborne illness (food safety)

What is the biggest threat to the lodging and restaurant industries? a. Lack of demand b. Poor Service c. Food born illness (Food Safety) d. Lack of promotion