DIPLOMA IN CULINARY ARTS/DIPLOMA IN HOTEL MANAGEMENT
FOOD AND BEVERAGE COST CONTROL
JANUARY-APRIL 2020 TERM
FINAL EXAMINATION
STUDENT NUMBER_____CC019-09-1004___________________________
DATE OF SUBMISSION 14/4/2020_____________________________
TIME ALLOWED: 3 HOURS
INSTRUCTIONS
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This is an open book examination
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Don’t share your answers with your classmates
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All answers must be typed and in Ms Word and in Bookman Old Style, Size 12
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Type your answer below each question you have attempted
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Download the question paper and save your work using your admission
number
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Remember that you will be awarded an “F” and your studies at Boma
International Hospitality College be discontinued if you are caught
CHEATING in the examination
Type your answers below each question you have attempted (Press enter
to create more space for your answers)
SECTION A (20 MARKS)
QUESTION ONE (COMPULSORY)
Case Study
The manager of a small café in the vicinity of a large hotel became suspicious
when it was offered beef tenderloins, by an unknown salesman, at a price
considerably below the market price. He enquired of the hotel manager regarding
his purchase of beef tenderloin, and being given permission to watch at the
receiving entrance of the hotel, discovered that the truck driver for the meat
packer was the “salesman” of the low priced tenderloins.
He reported the discovery to the hotel manager, but the latter expressed full
confidence in the receiving system of the hotel and declared that there was no
connection between the hotel and the below- market price cost of tenderloins.
However, an investigation was made and it was found that a large quantity of
meat was delivered every second or third day in several boxes, which were
stacked on a hand truck by the driver, and taken to the receiving clerk who
carefully checked the weight. The driver then placed the meet in a big walk-in
refrigerator. When the empty boxes were taken to the truck a few tenderloins
would remain in the lowest box of the stack. The loss was equivalent to about $
105.00 for each delivery.
a)
Explain 5 Problems faced by the company
(5 Marks)
 Insufficient inventory.
 Loss of product quality.
 Loss in finances.
 Increased price of dishes
 Need of new supplier.
b)
How can this practice be stopped?
(5 Marks)
 Hotels should only entrust the establishments hired employees to handle
incoming goods. As to reduce theft. There should be a list of the groceries
that were to be acquired by the supplier, and should be ticked and
checked. Any incoming supply vehicle should be written down and all
drivers known and have fully checked backgrounds.
b)
Recommend a system whereby such practice would be impossible. (10
Marks)
 Purchasing
 Receiving

Storage
 Issuing
 Preparation and control
 Service
 Sales
 Accounting
SECTION B (30 MARKS; ANSWEAR ANY TWO QUESTIONS)
QUESTION TWO
When the food and beverage control is well coordinated, it will drive the
revenue for an establishment. Discuss, giving relevant examples in line with
the food and beverage department. (15 marks)
 Staying on top of consumer tastes and trends. Consumers are
increasingly curious about different types of food and beverage including
healthier and more sustainable produced options.
 Price engineering. Determine which items on a menu sell or do not sell.
Keep a sharp eye on your F&B revenue and stay flexible to adjust that data.
 How the restaurant is viewed. It is always key to know the customer
experience. The restaurant can have random surveys with there guests to get
feedback on the establishment.
 Up-selling. The team should be able to communicate with guests and give
them suggestions or even point out their own favourites which will increase
tips and sales.
 Theft. Systems should be installed in the area of work that will assure you of
all the purchases made on that day and will help you trust your team more.
 Peak sale times. This is when business is moving and fast. Off-peak sale
times is when business is slow and barley moving. Have a work plan on
whether sittings need to be increased on this peak sale times to maximize
revenue. Come up with a strategy.
QUESTION THREE
With development in infrastructure and information technology, the store
department is likely to be a thing of the past in the near future. Discuss, citing
relevant examples. (15 marks)
 Reduces inventory costs. The system allows you to know what u have
on hand and what you have on order. These systems automatically
update your database when product sale or move.
 Improves your forecasting. Automated statistical forecasting systems
create far more accurate and calculated demand on forecasting.
 Improves customer satisfaction. Customers don’t want to wait. With
an electronic inventory system. You always are sure of what is in the
storeroom and what is out of stock.
 Communication. Communication between the customer and the
establishment is key, keeping customers updated on new inventory is
great and adviced.
 Adding value to the retail transaction. IT assisted transactions provide
speed, convenience and accuracy.
QUESTION FOUR
The food and beverage control is the heart of food and beverage department.
Discuss citing relevant examples. (15 marks)
 Menu item forecasting. This helps in knowing what is to be produced in
the kitchen. This slows down delays and speeds up operations.
 Standardized recipes. A standardized recipe will produce a product that
is so close to identical in taste and yield every time it is made, no matter
who follows the directions
 Maintaining sales history. Record keeping provides the business a real
advantage over the competition. Acts as resource for new strategies, also
helps in managing working costs effectively.
 Sales variance. It is the difference between actual sales and budget
sales. its used to analyze business results to better understand markey
conditions
 Predicting future sales.