19 Aug HTF 201 Part 1 & 2 Questions(Answered)

Part 1: Multiple Choice Questions (50 Credits)

1.        A restaurant manager notes that actual labor costs exceed the expected labor costs for the volume of business during the week. The manager calls a management meeting to discuss the situation and, if necessary, take corrective action to prevent excessive labor costs for upcoming weeks. Which of the following management functions best describes the kind of work that the management team will be performing?

a.        planning

b.        staffing

c.     controlling

d.        organizing

2.        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.

3.        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.

4.        Robert, the newly hired manager at the independently owned Seasons Restaurant, has discovered that calculations of actual food costs include the cost of providing employee meals. However, employee meals are not included as costs in establishing the restaurant’s standard food costs. Which of the following principles of developing an effective control process has been violated?

a.        Information about actual operating results must be simple and easy to collect.

b. Actual information must be collected in a manner consistent with the procedures and formats used to establish performance standards.

c.        Checks on the controls should be part of the control system itself.

d.        Actual information generated for control purposes should be compatible with the formats used in accounting systems.

5.        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.

6.        The cost effectiveness of a control system is measured by:

a.    comparing the cost of implementing the control system with the cost reductions achieved by using the system.

b.        evaluating how well the control system helps identify what corrective action is necessary to bring actual operating results closer to established standards of performance.

c.        assessing the timeliness by which control information is made available to managers.

d.        determining if the control system gives priority to factors that are most relevant to attaining the operation’s goals.

7.        Service has been slow at the Season’s Restaurant. The manager has traced the problem to the flow of products from the storeroom to production areas. Which of the following control points is likely to be the focus of corrective action?

a.        preparing

b.        serving

c.         issuing

d.        storing

e.         purchasing

8.        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.

9.        Which of the following control tools links a restaurant’s suppliers and receiving staff, ensuring that the proper quality of products is available for food production and service?

a.        yield percentage worksheets

b.        standard purchase specifications

c.         standard recipes

d.        standard portion size specifications

10.    If the original yield for a standard recipe is 25 portions and the desired yield is 125 portions, what is the adjustment factor?

a.         5.2

b.        5.0

c.         2.5

d.        1.2

11.    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

e.         The information is not enough

12.    Which of the following budgeting processes ensures that plans are specifically geared to individual operations within multi-unit food service companies?

a.        reforecasting

b.        bottom-up budgeting

c.         top-down budgeting

d.        mark-up budgeting

13.    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

14.    At the 120-seat Riverside Restaurant, total variable costs for September were $12,000. For October, the manager expects to sell 10 percent more meals than in September. If the increase in sales volume occurs, the manager should expect the total fixed costs for October to be:

a.        lower than in September.

b.        higher than in September.

c.         relatively the same as in September.

d.        impossible to forecast with any accuracy.

15.    At the Virtual Cafe, the average price per meal 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 net income (or loss) for the month would be:

a.        $25,000 net income.

b.        $10,000 net income.

c.         $0 (breakeven).

d.        $10,000 net loss.

e.         The information isn’t enough

16.    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

17.    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

According to the information in the following table answer the questions from 18 to 20.

RU Prime-rib burger

10 Servings

Purchase

Cost/Purchase

Ingredient

Amount Needed

Unit

Unit

ground prime rib

3

lb.

10-lb box

$60.00

crispy fried onions

1

cup

1 gallon

$32.00

Worcestershire sauce

3

cup

1 gallon*

$16.00

pre-sliced mushrooms

1

#10 can

6 #10/case

$18.00

hamburger buns

10

a dozen

$6.00

spreadable cheddar cheese

1

lb.

5 lb.

$15.00

*1 gallon = 16 cups

18.    The standard portion cost of the ground prime rib is:

a.         $5.40

b.         $1.80

c.         $2.00

d.         $6.00

19.    The standard portion cost of each prime-rib burger is

a.         $3.40

b.         $14.70

c.         $3.50

d.         $3.20

20.    If the budgeted food cost is 35%, according to the ingredients markup pricing method, the base selling price for this menu item should be:

a.         $5.14

b.         $10.00

c.         $9.14

d.         $9.71

e.         cannot be determined

21.    After analyzing menu items, the management team at the Sports Bar & Grill decided that they could increase the prices of several menu items, sell fewer of them, but increase overall revenues. The demand for these menu items would best be characterized as:

a.         inelastic.

b.         high.

c.         elastic.

d.         low.