Question 1

Which of the following is not a method to price a menu?
A) matching a competitor's price
B) amount of markup using a percent
C) food cost percent
D) multiplier effect

Accepted Answer

Matching a competitor's price should not be the only method used to price a menu. It may be beneficial to consider the competitor's price, but it should not be the sole determining factor for setting prices. Using food cost percent, amount of markup using a percent, and the multiplier effect are all valid methods for pricing a menu.

Question 2

There is one thing a restaurant owner can and must do before setting the menu price of an individual entree or sandwich-the price of the edible portion cost for each menu item must be determined.

Accepted Answer

False

Question 3

Menu or selling price = raw food cost + food cost percent.

Accepted Answer

This is the formula used in the restaurant industry to calculate menu prices.

Question 4

Raw food cost * markup rate = markup amount

Accepted Answer

The answer of Raw food cost * markup rate =...

Question 5

The _____ is a detailed list of food served in a food service establishment.
A) menu
B) budget
C) daily food cost report
D) standardized recipe

Accepted Answer

A menu is a detailed list of food served in a food service establishment. A budget is a financial plan, a daily food cost report is a document tracking expenses, and a standardized recipe is a recipe that has been tested and adapted for consistency and quality.

Question 6

Which of the following is not included on a daily food cost report?
A) direct purchases
B) rent
C) total sales
D) food cost percentage

Accepted Answer

Rent is not related to food cost and therefore not included on a daily food cost report. The other options, direct purchases, total sales, and food cost percentage are all directly related to food cost and should be included on the report.

Question 7

When multiplying or dividing with percents, it is best to convert the percent to its decimal equivalent. This is done by removing the percent sign (%) and moving the decimal point two places to the right.

Accepted Answer

To convert a percent to its decimal equivalent, you remove the percent sign (%) and move the decimal point two places to the left.

Question 8

To calculate the amount of average sales:
A) Total Sales ÷ Customer Count = Amount of Average Sales
B) Total Sales * Customer Count = Amount of Average Sales
C) Amount of Average Sales = Total Sales - Customer Count
D) Amount of Average Sales = Total Sales + Customer Count

Accepted Answer

To calculate the average sales, we need to divide the total sales by the number of customers. Therefore, the correct formula is Total Sales ÷ Customer Count = Amount of Average Sales. Option A is the only choice that provides this formula. Option B multiplies the two quantities instead of dividing them, while options C and D involve subtracting or adding the customer count, which is incorrect for calculating average sales.

Question 9

The multiplier effect works on the principle of food cost percentage, but instead of dividing, the restaurant owner multiplies the cost of the raw food by a number that corresponds to the food cost percentage goal.

Accepted Answer

The multiplier effect in restaurant pricing involves multiplying the cost of raw food by a specific number to achieve a desired food cost percentage, allowing the restaurant to cover costs and make a profit.

Question 10

_____ are those foods that are usually purchased each day or every other day. They include produce, dairy products, fresh seafood, bread, rolls, and any other items that are considered perishable.
A) Bulk purchases
B) Customer counts
C) Direct purchases
D) Storeroom requisitions

Accepted Answer

Direct purchases are those made on a day-to-day basis for perishable items such as produce, dairy products, fresh seafood, bread, and rolls. Bulk purchases refer to large quantities of items bought at one time, customer counts refer to the number of customers coming into the establishment, and storeroom requisitions are requests for items that need to be restocked in the storeroom.

Question 11

_____ is the cost of the food as it relates to the amount of dollars received in sales. _____ is the cost of labor as it relates to the amount of dollars received in sales.
A) Food cost percentage, Total revenue
B) Labor cost percentage, Food cost percentage
C) Total revenue, Labor cost percentage
D) Food cost percentage, Labor cost percentage

Accepted Answer

The first blank is referring to the food cost percentage, which is the cost of the food as a percentage of the total food sales. The second blank is referring to the labor cost percentage, which is the cost of labor as a percentage of the total sales. Therefore, the correct answer is D) Food cost percentage, Labor cost percentage.

Question 12

_____ are defined as the total moneys needed to pay all the required employees to create, make, and serve food to the guests.
A) Direct purchases
B) Labor costs
C) Food costs
D) Total sales

Accepted Answer

Labor costs are the total expenses related to paying employees for their work in creating, making, and serving food to the guests. Direct purchases refer to the cost of purchasing raw materials to produce the food, while food costs are the total expenses incurred for food ingredients. Total sales refer to the overall revenue generated from selling the food items. Therefore, option B is the correct answer.

Question 13

Bulk purchases are those foods that are usually purchased each day or every other day.

Accepted Answer

Bulk purchases are purchases made in large quantities, such as buying a month's worth of groceries at once. Everyday foods are those that are purchased more frequently, usually on a daily or every-other-day basis.

Question 14

A daily labor cost report should be generated each day for the manager's review.

Accepted Answer

A daily labor cost report is crucial for a manager to keep track of the labor cost and make necessary adjustments to control labor expenses. By reviewing the report, the manager can identify any variances and take corrective actions to improve efficiency and reduce costs. Hence, it is essential to generate a daily labor cost report, and option A is the correct answer.

Question 15

The three methods that can be used to price the menu-amount of markup using a percent, labor cost percent, and multiplier effect-will all yield the same final menu price.

Accepted Answer

Each method considers different factors (markup percentage, labor cost, and multiplier effect respectively) and will likely result in different final menu prices due to the varying emphasis on cost components and desired profit margins.

Question 16

Total Sales = Average Sales * Customer Count

Accepted Answer

This is correct because the total sales can be calculated by multiplying the average sales per customer by the total number of customers.

Question 17

Which of the following is not considered when establishing a menu price?
A) customer count
B) labor costs
C) taxes
D) equipment

Accepted Answer

Customer count is not directly considered when establishing a menu price; factors like labor costs, taxes, and equipment are more directly related to cost calculations for menu items.

Question 18

One of the tools that is used to control the cost and use of food is the _____, the purpose of which is to show management the exact cost and amount of food used on any given day.
A) daily food cost report
B) daily labor cost report
C) profit and loss statement
D) invoice

Accepted Answer

The daily food cost report is specifically designed to show the exact cost and amount of food used on any given day. The other options, while useful in their own right, do not provide the specific information required to control the cost and use of food.

Question 19

One of the tools that is used to control the cost and use of food is the profit and loss statement, the purpose of which is to show management the exact cost and amount of food used on any given day.

Accepted Answer

The profit and loss statement is a financial document that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year, not on any given day. It shows the overall profitability of a business, not the exact cost and amount of food used on any given day. Tools like inventory management systems, daily food cost reports, and portion control are used for controlling the cost and use of food on a daily basis.

Question 20

Markup is the money added to raw food cost to obtain the markup amount.

Accepted Answer

Markup is the percentage or amount added to the cost of a product or service to cover the overheads and profit. It is not the same as the money added to raw food cost.

Quiz 10: Determining Cost Percentages and Pricing the Menu

Which of the following is not a method to price a menu?

There is one thing a restaurant owner can and must do before setting the menu price of an individual entree or sandwich-the price of the edible portion cost for each menu item must be determined.

Menu or selling price = raw food cost + food cost percent.

Raw food cost * markup rate = markup amount

The _____ is a detailed list of food served in a food service establishment.

Which of the following is not included on a daily food cost report?

When multiplying or dividing with percents, it is best to convert the percent to its decimal equivalent. This is done by removing the percent sign (%) and moving the decimal point two places to the right.

To calculate the amount of average sales:

The multiplier effect works on the principle of food cost percentage, but instead of dividing, the restaurant owner multiplies the cost of the raw food by a number that corresponds to the food cost percentage goal.

_____ are those foods that are usually purchased each day or every other day. They include produce, dairy products, fresh seafood, bread, rolls, and any other items that are considered perishable.

_ is the cost of the food as it relates to the amount of dollars received in sales. _ is the cost of labor as it relates to the amount of dollars received in sales.

_____ are defined as the total moneys needed to pay all the required employees to create, make, and serve food to the guests.