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Food & Beverage Pricing Methods 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!

Page 1

Question 1 1. Bill spends $10,000 on food and has $20,000 in other non-food costs. He expects to have 5,000 customers in that time period and wants a total of $10,000 in profit. What is his base selling price?

Question 2 2. Which of the following is an essential piece of information to calculate the base selling price using the contribution margin pricing method?

Question 3 3. Bill spends $10,000 on food and has $20,000 in other non-food costs. He expects to have 2,500 customers in that time period and wants a total of $10,000 in profit. What is his contribution margin?

Question 4 4. Which of the following is an example of applying the intuitive price method?

Question 5 5. Which of the following is a downside of the intuitive price method?

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Question 6 6. Which of the following is TRUE of the intuitive price method?

Question 7 7. What is the difference between subjective pricing and objective pricing strategies?

Question 8 8. The average labor cost per guest can be determined by taking the total labor cost and dividing it by the _____.

Question 9 9.

Use the simple prime cost method to calculate a menu price based on the following information:

A restaurant's food cost to make a hamburger is $1.00, and the average labor cost is $2.00. The operation's target prime cost percentage is 60%. How much should the restaurant charge for the hamburger?

Question 10 10. Which of the following is the benefit to a restaurant heavily advertising a loss leader menu item?

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Question 11 11. Which of the following statements demonstrates how loss leader pricing can create a profit for a restaurant?

Question 12 12. Which of the following is the intention of loss leader pricing in a restaurant setting?

Question 13 13. Which term describes the final price calculated using the ratio pricing method?

Question 14 14. Why does the ratio pricing method need to include the desired profits?

Question 15 15. What is the ratio in the ratio pricing method multiplied by to determine a price?

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Question 16 16. What kind of approach to food pricing is the highest price method?

Question 17 17. Which of the following is TRUE of the highest price method of food pricing?

Question 18 18. Which of the following best illustrates an example of the highest price method of food pricing?

Question 19 19. Which markup method does the markup with accompaniment method expand upon?

Question 20 20. The cost of a steak is $6.00. The restaurant's multiplier using the prime ingredient markup method is 5.2. If the cost of steak rises to $7, what should the new price be?

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Question 21 21. Restaurant Z is trying to determine a multiplier for use in the prime ingredient markup method. According to the model, what should the multiplier be if it spends $3,000 on ingredients to generate $19,000 in revenue?

Question 22 22. Which of the following is TRUE of objective food pricing methods?

Question 23 23. Which of the following price methods purposely takes into account the cost of overhead?

Question 24 24. Which of the following is a downside of using an objective pricing method?

Question 25 25. What factors typically are considered when using the reasonable price method?

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Question 26 26. When using the reasonable pricing method, what factors are not usually considered?

Question 27 27. Who is most likely to use the reasonable price method?

Question 28 28. The base selling price is determined by the contribution margin pricing method. What does the base selling price represent?

Question 29 29. Which of the following is TRUE of the intuitive price method?

Question 30 30. The specific prime cost method used pre-determined multipliers that are calculated based on the weighted costs for both extensive and non-extensive preparation items. This multiplier is then used to determine the final menu price using what formula?

Food & Beverage Pricing Methods 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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