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Food & Beverage Costs & Purchasing 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. Terrance uses a par level system for boxes of brownie mix. He has set a minimum level of three boxes and a maximum level of 12 boxes. As he goes through his inventory, he notices he only has five boxes in stock. The brownie mix boxes are used at a rate of one box per day, and his order is scheduled to arrive in two days. How many boxes should he order?

Question 2 2. A just-in-time (JIT) inventory system is best used for which type of product?

Question 3 3. Amy uses fresh raspberries for a parfait dessert in her cafe. She gets her raspberries from a local farmer once per week when they are in season. Amy uses a 1/2 pint of raspberries for every parfait she makes, and she expects to make a total of 20 parfaits for the week. How many pints of raspberries should she order? Assume she currently has no raspberries in her inventory.

Question 4 4. What is the restaurant industry's common rule-of-thumb target for Prime Cost?

Question 5 5. The Cost of Goods Sold is found by taking the beginning inventory value, adding in purchases, and subtracting out the _____.

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Question 6 6. If a restaurant's prime cost percentage is 63%, how much money is it spending to produce every $1.00 worth of food sold?

Question 7 7. Which form is used to inform a food distributor that the account balance needs to be adjusted because of missing or damaged items in the delivery?

Question 8 8. How should the temperature be verified when accepting a food delivery?

Question 9 9. Which document should the person receiving a food delivery for a restaurant use to ensure the right items and quantities have been delivered?

Question 10 10. If purchases were $4,000, net inventory was $1,000, and food sales were $20,000, then what is the food cost percentage?

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Question 11 11. What would a food cost percentage of 50% indicate?

Question 12 12. How do you calculate net inventory when calculating the percentage of food cost?

Question 13 13. What makes your cost of goods sold different from your expenses?

Question 14 14. What is the similarity between your cost of goods sold and your expenses?

Question 15 15. What is the tax advantage of separating your cost of goods sold from your expenses?

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Question 16 16. Which of the following is the right food product for a pizza restaurant that offers large, cheap pizzas?

Question 17 17. A highly rated restaurant chooses quality foods even though they are more expensive. Why would they do this if there are cheaper food alternatives?

Question 18 18. If you have a restaurant that caters to the health crowd, which of the following foods would you NOT purchase?

Question 19 19.

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 20 20. 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?

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Question 21 21. Identify a sensible selling price for a cup of coffee with a food cost of $0.67 and overhead costs of $2.12.

Question 22 22. If you sold out of all your inventory at the beginning of the year, what is your starting inventory?

Question 23 23. Which of the following is the formula to calculate COGS?

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

Question 25 25. A par level inventory system is best used for which types of products?

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Question 26 26. What is the purpose of using a standardized recipe?

Question 27 27. What is the upper time limit it should take to get temperature controlled food into storage during a delivery?

Question 28 28. Which of the following is considered to be a good food cost percentage?

Question 29 29. Which of the following is an expense not included in COGS?

Question 30 30. When it comes to purchasing food for a restaurant, which of the following limits the amount of food you can purchase?

Food & Beverage Costs & Purchasing 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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