HTM 341 Quiz Questions (Exam 1)
Inventory can be found on ____________________.
Balance sheet
Which of the following is NOT a benefit of establishing standard procedures (establishing correct ways to do things)? -Easy for managers to identify the source of under performance -Maintain consistent quality and quantity -Reduce the cost of performing a task -A base for training
Reduce the cost of performing a task
Goals difficult to measure are a control area based problem. T/F
T
In analyzing food cost, food cost percent is a more important metric than dollar amount change from last year. T/F
T
Lack of direction is a personnel based problem. T/F
T
Motivational problems are a personnel based problem. T/F
T
ROE indicates the company's profitability from the shareholder's perspective. T/F
T
The term overhead means what?
all costs other than the prime cost
In our class example, BWLD's gross margin is much higher than the industry average but operating margin is only on par with the average. It means that BWLD ______________?
are spending too much on operating expenses compared to the industry average
Profitability = operations management x __________________________________ x debt management
asset management
The profitability of a company (ROE) is determined by its business strategies and ______________________ strategies.
finanical
Which of the following is an example of "quality" standard? -USDA beef grading system -"prime" grade beef eight fluid ounces per -cup
"prime" grade beef
How much is the cost of goods sold if beginning inventory is $70, ending inventory is $30, and purchases during the period is $50?
$90
Which of the following is a source of organizational based problems? Conflicting goals Lack of direction Motivational problems Goals difficult to measure
Conflicting goals
Inefficiency, waste, and theft are causes of _______________________ cost.
Excessive
Applying common-size analysis on the income statement means dividing individual expenses by total costs and expenses. T/F
F
As business volume increases, fixed cost per unit remains the same. T/F
F
Depreciation expenses will reduce the cash flow from operations. T/F
F
Financial leverage is increasing the level of debt to improve ROA. T/F
F
If the total operating expense account are stable over the years in both dollar and percentage terms, it is safe to conclude that the company is doing well in controlling operating expenses. T/F
F
The cost of coffee beans is an example of beverage cost. T/F
F
The purpose of cost control is cutting costs to the lowest level possible. T/F
F
Training expenses include the cost of paying for the same time that employees receive the training. T/F
F
What ratio tells us management's EFFICIENCY in utilizing the company's RESOURCES?
Fixed asset turnover
Which of the following is a variable cost? Salary Rent Food cost Marketing Expense
Food cost
What are prime costs?
Food cost, beverage cost and labor cost
What is one of the best ways to improve profits? Assume everything else is the same?
Increasing price
What is not a quick asset?
Inventory
The difference between gross profit and operating income is:
Operating expenses
In DuPont analysis, ROE is affected by three activities. What are they?
Operations management, asset management and debt management
If we say that food cost is 30%, it means food cost is 30% of ________________?
Revenue
