Quiz 3 Cost Control

Question 1

The amount of dollars you take in is called

Answer 1

Revenue / Sales

Question 2

Costs required to operate the business

Answer 2

Expenses

Question 3

Dollar amount left over after all expenses have been paid

Answer 3

Profit

Question 4

Profit formula

Answer 4

Revenue-Expenses = Profit

Question 5

4 main costs that a food service manager must concern themselves with

Answer 5

1. Food costs
2. Beverage costs
3. Labor costs
4. Overhead / Operational costs

Question 6

are the costs
associated with producing the
menu items.

Answer 6

Food costs
- usually the largest of second largest expense
- include drinks other than alcoholic!! like soda/fountain drinks

Question 7

Costs of all alcoholic drinks (beer, wine, liquor) and anything needed to make them (such as mixers, lemons, cherries, juices)

Answer 7

Beverage costs

Question 8

include the cost of all
employees necessary to run the
business, including taxes and
benefits.

Answer 8

Labor Costs
- usually secondary to food costs

Question 9

include all
expenses that are neither food,
beverage nor labor, such as
utilities, rent, linen, paper
supplies, repair etc

Answer 9

Overhead costs/ Operational costs

Question 10

Costs that do not change with change in sales

Answer 10

Fixed costs
example- rent

Question 11

Costs that are directly related to business volume

Answer 11

Variable Costs

Question 12

Costs that have both fixed and variable elements

Answer 12

semi-variable costs

Question 13

Costs that can be changed in the short term

Answer 13

Controllable Costs

Question 14

Costs that can not be changed in the short term

Answer 14

Noncontrollable Costs

Question 15

may be food or beverage portions or units of work per dollar basis

Answer 15

Unit costs

Question 16

The overall or total costs of one specific type of cost

Answer 16

Total cost
ex- total of labor costs for one period

Question 17

Monetary terms

Answer 17

Include total sales
- items/assets that can be converted to cash easily

Question 18

Monetary terms can be expressed as:

Answer 18

• By category ( food or beverage or labor)
• By server
• By seat ( total sales divided by number of seats)

Question 19

Other monetary terms include

Answer 19

Sales price
- Average sale per customer (the result
of dividing total dollar sales by the
number of sales or customers)
- Average sales per server

Question 20

Non monetary terms

Answer 20

Do not really have a price set on them- yet is an amount

Question 21

Non-monetary term examples

Answer 21

Total items sold (such as steaks sold)
Patients/Residents
- Covers (Total covers refers to the total number
of customers served in each period.)
- Seat turnover (the number of seats
occupied during a given period divided
by the number of seats)
- Sales mix (a term that describes the
relative quantity sold of any menu item
compared to other items in the same
category).

Question 22

Best way to strengthen controls?

Answer 22

Cut costs

Question 23

Examples of “cost leaks” in food service

Answer 23

• Trays provided for discharged
  or deceased patients
• Nourishments not served
• Nourishments served with
  meals
• Residents not fed
• Overproduction of food
• Poor portion control

Question 24

List specific ways to strengthen controls regarding employees and labor

Answer 24

• Make sure everyone is dressed appropriately
• What are the rules for clocking in and out?
• Are employees arguing?
• How to cut down time for cumbersome tasks
• Ensure no employee is stealing product
• Monitor breaks, absences, and tardiness
• What is the employee turnover rate?
• What can be done in downtime?

Question 25

K.I.S.S meaning

Answer 25

Keep it simple, stupid for menus

Question 26

When should you replace the food?

Answer 26

When >50% of the item is returned for >25% of the residents.

Question 27

Regular vs Therapeutic diets

Answer 27

Regular is less expensive Therapeutic is 50% more expensive

Question 28

Reasons to liberalize diets

Answer 28

* Dietary Compliance – Poor taste = not eating = malnutrition – Malnutrition will kill faster than a disease * Improved Psycho-Social status * Improved appearance and taste of food * Enhanced nutrient intake * Increased accuracy of tray `line – The more specialty items, the more errors * Improved blood sugars – Reduces the urge to cheat * Better survey results

Question 29

Reasons to change the menu frequently

Answer 29

Necessary for long term care “Odd” number cycle length to avoid the same food every third Monday, etc. Have different cycles for Spring/Summer and Fall/Winter Failure to change menus leads to menu fatigue and malnutrition

Question 30

Food for profit examples

Answer 30

- meals on wheels - vending - home meal replacement - meals sent to day care centers - catering

Question 31

How to save money in purchasing, receiving, and preparation?

Answer 31

Have a menu * Standardized Recipes * Portion Control * Have an ordering procedure * Chose the right quality and quantity Do you have and use food specs? * Do you have a properly trained person to receive? * Are prices checked? * Is food rotated properly? * Is a lot of food thrown away due to over ordering?

Question 32

Examples of adequate small ware to get the job done efficiently

Answer 32

hotel pan scales thermometers pot holder

Question 33

Food Prep and Service

Answer 33

* Are meats cooked to proper temperatures? * Are standardized recipes used? * Is portion control monitored? * Are small portion requests honored? * Does production follow the census? * Is a nourishment used when a fluid would do? * Are missed meals reported in a timely manner to avoid unneeded trays? * Have food alternatives to laxatives been tried?

Question 34

Components of food and beverage cost calculations

Answer 34

beginning inventory closing inventory credits and transfers purchases

Question 35

Cost analysis methods

Answer 35

COGS Labor, food, or beverage cost %