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Financial Management in Hospitality Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is an expense not included in COGS?

Question 2 2. What is the similarity between your cost of goods sold and your expenses?

Question 3 3. Identify the typical profit margin for a restaurant.

Question 4 4. Which of these staff members is NOT normally compensated from food income?

Question 5 5. If you sold out of all your inventory at the beginning of the year, what is your starting inventory?

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Question 6 6. Which of the following is the formula to calculate COGS?

Question 7 7. If purchases were $4,000, net inventory was $1,000, and food sales were $20,000, then what is the food cost percentage?

Question 8 8. If purchases are $10,000, net inventory is $0, and sales are $50,000, then what is the food cost percentage?

Question 9 9. Which is a disadvantage of the '100% Investor Funded with 50%/50% Profit Split with Managing Partner' restaurant investment strategy?

Question 10 10. Which is an advantage of the '100% Investor Funded with Salaried Managing Partner' restaurant investment strategy?

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Question 11 11. Dixie Diner did $50,000 in lunch sales with a food cost of $20,000. What is the contribution percentage for lunch sales?

Question 12 12. The Local Spot has an 85% contribution percent for breakfast items, a 75% contribution percent for lunch items, and a 65% contribution for dinner and drinks. Which meal is most profitable?

Question 13 13. Identify a sensible selling price for a cup of coffee with a food cost of $0.67 and overhead costs of $2.12.

Question 14 14. In one dish, you use 2 sticks of celery. Your purchase price for a bunch of celery is $0.98. This particular bunch has 15 sticks of celery in it. What is the cost of celery for this dish?

Question 15 15. What makes your cost of goods sold different from your expenses?

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Question 16 16. Select the two expenses that are nearly the same when running a restaurant?

Question 17 17. Calculate the COGS of a company with a beginning inventory of $100 and an ending inventory of $200. The company also spent $10,000 throughout the year to make more inventory.

Question 18 18. How do you calculate net inventory when calculating the percentage of food cost?

Question 19 19. What is the definition of investment?

Question 20 20. Benchmarking is _____.

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Question 21 21.

You are trying to price a certain dish for your new menu. This particular dish contains chicken, carrots and butter that are purchased as follows:

Chicken at $5.00 per pound

Carrots at $2.00 per pound

Butter at $1.60 per pound

It takes 1 hour to complete the dish containing 2 pounds of chicken, 1 pound of carrot and 5 ounces of butter.

If the overhead cost amounts to $12 per hour, what is the break-even price for this dish?

Question 22 22. Which of the following costs will be included in the cost of goods sold line item?

Question 23 23. The restaurant McResto has appointed Mary as the Manager. Which of her decisions will help in reducing operating costs?

Question 24 24. Which of the following costs is NOT a part of calculating your COGS?

Question 25 25. Which of the following is considered to be a good food cost percentage?

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Question 26 26. Which of these is not always a factor to consider in analyzing restaurant investment strategies?

Question 27 27. Which of these is a prime cost?

Question 28 28. The labor cost for a certain dish is $40 per hour. If it takes 45 minutes to make the dish, what is the labor cost for this particular dish?

Question 29 29. What is the tax advantage of separating your cost of goods sold from your expenses?

Question 30 30. Which of the following is an overhead cost to the business of a restaurant?

Financial Management in Hospitality Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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