ProStart Level 2
Chapter 3 Cost Control
Name _________________________
Due date :3/21/2013
Section 3.1 Introduction to Cost Control
Study Questions
1. What is the basic principle of cost control?
2. Why are food costs, beverage costs and labor costs considered variable or semi variable costs?
3. Overhead cost is a fixed or non-controllable cost. What are 3 items that are fixed costs?
4. The most common foodservice revenue forecasting techniques are based on what 2 things? (see page 152)
5. A sales history is a record of what?
6. Write down the formula for calculating Average Sales per Customer
7. Calculate the Average Sales per Customer using the following information and your formula from question #4
Sales for the month
$64,578
Customers for the month
2,966
What is the average sale per customer? $_______.____
8. Companies use Profit and Loss Reports to judge _______________, _______________, & _______________.
9.
10. Define
1. Operating Budgets
2. Cost Control
3. Production sheets
Section 3.2 Controlling Food Costs
Study Questions
11. What are the 7 steps in the Flow of Food?
1. ______________________
2. ______________________
3. ______________________
4. ______________________
5. ______________________
6. ______________________
7. ______________________
12. Calculate the Standard Portion cost for apples
Case of apples
$37
Portions per case 85
Standard Portion Cost
$_____.___
13. Write down the formula on how to obtain Actual Food Costs (cost of food sold)
14. Calculate the Actual Food Costs using the information below and your formula from question #2
Opening Inventory
$ 4,050
Purchases
$11,380
Closing Inventory
$ 3,890
Actual Food Costs are
$_________
15. Write down the formula for Food Cost Percentages
16. Calculate the Food Cost Percentage using the information below and your formula from question #4
Daily food cost
$190.80
Total Sales
$536.40
Food Cost Percentage is
%
17. Contribution Margin formula (This is a multi-part problem. Make sure you do ALL STEPS to get the answer)
1. Sales price of food x food cost % = cost of food
2. Sales $ of food – cost of food = contribution margin
Sales price $20.00 x 0.25 = $_____ cost of food
Sales $20.00 - $_____ cost of food = $______c.m.
18. What tools do you have in a restaurant to help control portion sizes? (minimum of 3)
19. Why would you use a food production sheet?
20. Calculate the Menu Prices using the following methods
a. Straight Markup Method (Raw food cost * markup = ???, add ??? + raw food cost = $menu price)
Raw food cost is $0.86
2/3 markup
Menu price is $_____.___
b. Food Cost Percentage Method (Item cost/food cost % = menu price)
Item cost
$1.67
Food cost %
29%
Menu price
$_______.____
Section 3.3 Controlling Labor Costs
Study Questions
21. What are the 4 primary factors that contribute to labor costs?
1. _______________________________________
2. _______________________________________
3. _______________________________________
4. _______________________________________
22. How does a master schedule differ from a crew schedule?
23. When would you use a contingency plan?
24. Which of the three items on a good contingency plan would be most important to you as the employer?
Section 3.4 Controlling Quality Standards
Study Questions
25. List one way in which quality standards help with cost control for each of the following aspects of foodservice
1. Purchasing
2. Receiving
3. Storing
26. When receiving orders, why is it a good idea to check the delivery against the purchase order and the invoice?
27. When storing food, what are the procedures you should follow in
1. Freezers
2. Coolers
3. Dry storage
28. Why is standardizing food production a good quality control measure?
29. Employee theft is estimated to be 75% of all inventory shortages. How are you going to reduce employee theft
in your business?