Planning and Control for Food and Beverage Operations

Practice Tests

This booklet contains self-graded practice tests for every chapter in Planning and Control for Food and Beverage
Operations, Ninth Edition. Because these questions are similar in format and content to the questions on the Final
Exam, you can begin to prepare for the Final Exam with your first assignment. The answers to all questions can be
found in the Practice Test Answer Key at the back of this booklet.
2 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 1 The Challenge of Food and Beverage Operations

NAME: _____________________________________________________

DATE: _________________________________

1. Which of the following would be classified as a noncommercial food service operation?

a. a snack bar located in an airport terminal
b. a meal program at a college or university
c. a concession stand at a sports facility
d. an upscale, fine dining facility at a resort
2. Which of the following would be classified as a commercial food service operation?
a. meals prepared and served in a nursing home
b. a lunch program offered by a local school system
c. cafeteria food service in a local shopping mall
d. government food service facilities on a military base
3. Which of the following statements about hotel food and beverage operations is TRUE?
a. Hotel marketing efforts focus exclusively on attracting hotel guests to dine at the property’s food and
beverage outlets.
b. Room service is typically the most profitable food service operation in a hotel.
c. The restaurant manager in a hotel has greater decision-making powers than a manager of a freestanding
restaurant.
d. Catering responsibilities in a hotel are generally a function of the marketing and sales department.
4. Which of the following types of food and beverage operations faces the greatest challenge in relation to food
transport and delivery systems?
a. a freestanding restaurant
b. hotel food service
c. cafeteria food service
d. concession stands at sports facilities
5. Which of the following is a support center within a hotel?
a. the accounting department
b. the banquet operation
c. the rooms department
d. room service
6. Which of the following components of management best describes the tasks involved in motivating, training,
evaluating, and disciplining employees?
a. controlling
b. directing
c. staffing
d. coordinating
7. Increased tension between the dining room service staff and the kitchen production staff has prompted the
restaurant manager to create a team of supervisors to review current procedures for placing and picking up
orders. Which of the following management functions best describes the kind of work that the team of
supervisors will be performing?
a. staffing
b. coordinating
c. controlling
d. supervising
3 464T Planning and Control for Food and Beverage Operations, Ninth Edition
4 464T Planning and Control for Food and Beverage Operations, Ninth Edition

8. A restaurant manager notes that actual labor costs exceed the expected labor costs for the volume of business
during the week. The manager calls a management meeting to discuss the situation and, if necessary, take
corrective action to prevent excessive labor costs for upcoming weeks. Which of the following management
functions best describes the kind of work that the management team will be performing?
a. planning
b. staffing
c. controlling
d. organizing
9. Why are multi-unit organizations popular in the restaurant industry?
a. They provide brand recognition.
b. Greater opportunities are available to market throughout broad geographic regions.
c. Business financing is easier to obtain.
d. All of the above are true of multi-unit organizations.
10. The principal benefit of point-of-sale technology to a food and beverage operation is its:
a. ability to track, record, and provide detailed financial information.
b. efficiency in tracking guest reservations and matching reservation times with table assignments.
c. speed and accuracy in calculating guest check totals and making change for customers.
d. ability to control deliveries to and issues from food storage areas.
5 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 2 The Control Function

NAME: _____________________________________________________

DATE: _________________________________

1. Which of the following defines the correct sequence for business planning?
a. long-range plan, mission, vision, marketing plan, business plan, operating budget
b. vision, mission, long-range plan, business plan, marketing plan, operating budget
c. mission, vision, business plan, long-range plan, marketing plan, operating budget
d. business plan, vision, mission, long-range plan, marketing plan, operating budget
2. Which of the following resources is available in a limited supply to managers of food and beverage operations?
a. time
b. facilities
c. money
d. all of the above
3. In the sequence of planning, which of the following tools would managers generally develop last?
a. mission statement
b. operating budget
c. long-range plan
d. business plan
4. Effective control systems can help food and beverage managers:
a. identify mistakes and plan tactics to correct them.
b. create a mission statement.
c. identify new menu items to offer.
d. define strategic objectives.
5. Which of the following statements about the role of standards in the control process is TRUE?
a. Industry averages are the best source of information for establishing standards.
b. Financial standards should always be set on the basis of past financial statements.
c. Standards can be established for revenue goals and sales targets as well as for employee attendance and
safety records.
d. Standards are effective only if they state an expected level of performance for individual employees.
6. Sharon, the newly hired manager at the independently owned Seasons Restaurant, has discovered that
calculations of actual food costs include the cost of providing employee meals. However, employee meals are
not included as costs in establishing the restaurant’s standard food costs. Which of the following principles of
developing an effective control process has been violated?
a. Information about actual operating results must be simple and easy to collect.
b. Actual information must be collected in a manner consistent with the procedures and formats used to
establish performance standards.
c. Checks on the controls should be part of the control system itself.
d. Actual information generated for control purposes should be compatible with the formats used in
accounting systems.
7. Comparisons between standards and actual operating results should be made:
a. only when problems are suspected.
b. during the same time frames (e.g., monthly).
c. as soon as possible after actual costs are known.
d. periodically, but infrequently.
6 464T Planning and Control for Food and Beverage Operations, Ninth Edition

8. A shopper service is a(n):

a. service offered by many businesses to assist guests who are unable to visit the operation in person.
b. Internet-based buying service that offers managers greater control of the purchasing and receiving
function.
c. system of supply in which vendors automatically resupply the restaurant on a schedule determined by the
food and beverage manager.
d. control tactic that involves observing and reporting the actual operations of a business.
9. The cost effectiveness of a control system is measured by:
a. comparing the cost of implementing the control system with the cost reductions achieved by using the
system.
b. evaluating how well the control system helps identify what corrective action is necessary to bring actual
operating results closer to established standards of performance.
c. assessing the timeliness by which control information is made available to managers.
d. determining if the control system gives priority to factors that are most relevant to attaining the
operation’s goals.
10. Changes recommended by an operation’s controller to resolve actual and estimated income and cost variances
should be viewed by the food and beverage manager as:
a. a corporate mandate to adopt the changes.
b. advisory only.
c. coming from the chief financial officer.
d. not relevant.
7 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 3 The Menu: The Foundation for Control

NAME: _____________________________________________________

DATE: _________________________________

1. Service has been slow at the Season’s Restaurant. The manager has traced the problem to the flow of products
from the storeroom to production areas. Which of the following control points is likely to be the focus of
corrective action?
a. preparing
b. serving
c. issuing
d. storing
2. Which of the following is an example of an internal factor influencing decisions to change a menu?
a. consumer demand
b. menu mix
c. supply levels
d. competition
3. A chicken dinner has a precosted food cost of $3.50. If a 30-percent food cost is desired, what would be the
base selling price using the ingredients mark-up method?
a. $11.67
b. $12.60
c. $14.76
d. cannot be determined
4. Annual planning at the Sporting Life Restaurant estimates non-food costs at $220,000, sets required profit at
$17,200, and projects that 58,000 guests will be served during the upcoming year. What would be the average
contribution margin required per guest during the upcoming year?
a. $3.50
b. $3.75
c. $4.09
d. cannot be determined
5. The operating budget at the Home Style Restaurant sets food costs at $500,000, all non-food costs at $750,000,
and requires a profit of $95,000. Using the ratio pricing method, what would be the base selling price for a
menu item with a precosted food cost of $3.00?
a. $5.07
b. $6.98
c. $7.25
d. $8.07
6. Given the following information, what is the base selling price of the menu item using the prime costs pricing
method?
Menu Item Food Cost $3.40
Annual Labor Cost $200,000
Annual Number of Expected Guests 60,000
Desired Prime Costs Percentage 63%

a. $5.29
b. $5.40
c. $8.43
d. $10.68
8 464T Planning and Control for Food and Beverage Operations, Ninth Edition
9 464T Planning and Control for Food and Beverage Operations, Ninth Edition

7. The food cost of a menu item is $3.85 and its labor cost per guest is $2.95. If the desired prime costs
percentage is 60 percent, what would be the base selling price of the item using the prime costs pricing
method?
a. $4.92
b. $6.42
c. $11.33
d. $17.00
8. After analyzing menu items, the management team at the Sports Bar & Grill decided that they could increase
the prices of several menu items, sell fewer of them, but increase overall revenues. The demand for these menu
items would best be characterized as:
a. inelastic.
b. high.
c. elastic.
d. low.
9. The corporate management team of a theme restaurant chain recently evaluated the chain’s menu items and
identified several puzzles—items that are high in contribution margin but low in popularity. Which of the
following would be a reasonable strategy for the management team to adopt in relation to these items?
a. Decrease prices.
b. Place the items in more visible locations on the menu.
c. Shift demand to these items by using suggestive selling techniques.
d. All of the above are reasonable strategies.
10. Menu engineering classifies menu items that are low in popularity and low in contribution margin as:
a. puzzles.
b. plowhorses.
c. stars.
d. dogs.
10 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 4 Operations Budgeting and Cost-Volume-Profit Analysis

NAME: _____________________________________________________

DATE: _________________________________

1. Which of the following budgeting processes ensures that plans are specifically geared to individual operations
within multi-unit food service companies?
a. reforecasting
b. bottom-up budgeting
c. top-down budgeting
d. mark-up budgeting
2. When revenues are being projected, which of the following factors assumes that past trends are good predictors
of future growth?
a. revenue history
b. unusual events such as roadwork or renovation
c. competitive analysis
d. expense history
3. The first step in the process for budgeting for food and beverage operations is to:
a. set profit requirements.
b. project revenues.
c. estimate expenses.
d. predict cash needs.
4. Costs that remain constant in the short term, even though sales volume may vary, are called __________ costs.
a. variable
b. mixed
c. allocated
d. fixed
5. Which of the following is most likely to be classified as a variable cost?
a. general manager’s salary
b. rent expense
c. property taxes
d. food costs
6. At the 120-seat Riverside Restaurant, total variable costs for September were $12,000. For October, the
manager expects to sell 10 percent more meals than in September. If the increase in sales volume occurs, the
manager should expect the total fixed costs for October to be:
a. lower than in September.
b. higher than in September.
c. relatively the same as in September.
d. impossible to forecast with any accuracy.
7. Using the percentage method for estimating expenses, if the current beverage cost is 20 percent and projected
beverage revenue is $60,000, the estimated beverage cost in dollars for the new budget period would be:
a. $12,000.
b. $48,000.
c. $72,000.
d. $80,000.
11 464T Planning and Control for Food and Beverage Operations, Ninth Edition

8. At the Virtual Café, the average price per meal sold is $15 with an average variable cost of $7. Fixed costs for
July are expected to be $30,000. If the restaurant manager expects to sell 5,000 meals in July, the net income
(or loss) for the month would be:
a. $25,000 net income.
b. $10,000 net income.
c. $0 (break even).
d. $10,000 net loss.
9. The Night Owl Restaurant expects to sell 6,000 meals during the upcoming month with an average variable
cost per meal sold of $6. Total fixed costs are expected to be $24,000. The average selling price per meal sold
at the breakeven point would be:
a. $4.
b. $6.
c. $8.
d. $10.
10. The Daylight Diner expects to sell 6,000 meals during the upcoming month with an average variable cost per
meal sold of $6. If total fixed costs are expected to be $24,000, what would the average selling price per meal
sold be if the operation is to meet its $12,000 profit goal for the month?
a. $6
b. $8
c. $10
d. $12
12 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 5 Determining Food and Beverage Standards

NAME: _____________________________________________________

DATE: _________________________________

1. Which of the following control tools links a restaurant’s suppliers and receiving staff, ensuring that the proper
quality of products is available for food production and service?
a. yield percentage worksheets
b. standard purchase specifications
c. standard recipes
d. standard portion size specifications
2. A formula for producing a food and beverage item is called a(n):
a. product specification.
b. portion control percentage.
c. algorithm.
d. standard recipe.
3. Which of the following standard cost control tools defines the net weight or volume of a food item after it has
been processed according to established standard production procedures outlined in the standard recipe?
a. standard yield
b. standard recipe
c. standard portion size
d. standard portion cost
4. To produce a desired yield of 20 pounds from a standard recipe with a standard yield of 5 pounds, the amount
of each recipe ingredient used should be multiplied by:
a. 5.0.
b. 4.0.
c. 0.4.
d. 0.25.
5. If the AP price for a food item increased to $4.45 per pound and the cost factor for the item is 2.1, what is the
new cost per servable pound?
a. $2.13
b. $6.58
c. $9.35
d. $11.45
6. If the original yield for a standard recipe is 25 portions and the desired yield is 120 portions, what is the
adjustment factor?
a. 5.2
b. 4.8
c. 2.5
d. 1.2
7. If the standard portion cost for a menu item is $4.20 and 60 portions are prepared, what is the total ingredient
cost?
a. $125
b. $143
c. $225
d. $252
13 464T Planning and Control for Food and Beverage Operations, Ninth Edition
14 464T Planning and Control for Food and Beverage Operations, Ninth Edition

8. Which of the following files maintained by recipe management software applications contains data for all meal
periods and menu items sold?
a. ingredient file
b. recipe file
c. menu item file
d. menu mix file
9. If total food costs are $10,500 and total food sales are $30,000, the food cost percentage is _________ percent.
a. 28
b. 31
c. 33
d. 35
10. Managers use standard beverage costs to establish:
a. competitive prices.
b. standard purchase specifications.
c. a base of comparison to measure actual results of the beverage operation.
d. accounting and management principles.
15 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 6 Purchasing and Receiving Controls

NAME: _____________________________________________________

DATE: _________________________________

1. A restaurant wastes $600 each month because of poor purchasing practices. If the operation’s budget targets a
profit of 15 percent of revenues, how much additional revenue must be generated by year’s end to recoup the
$600 of wasted resources each month?
a. $4,000
b. $24,000
c. $48,000
d. $52,000
2. In relation to the food service purchasing cycle, which of the following positions is generally responsible for
completing an issue requisition when items are needed in food production areas?
a. chef
b. purchasing agent
c. receiving agent
d. storeroom clerk
3. Which of the following terms describes a series of records, documents, or reports that trace the flow of
resources through an operation?
a. purchase specification
b. audit trail
c. delivery invoice
d. inventory checklist
4. The manager of a new 120-seat independent restaurant will start operations with an inexperienced chef and
kitchen staff. Which of the following supplier selection criteria would the manager likely rank as most
important?
a. location of supplier
b. quality of the supplier’s operation
c. the supplier’s prices
d. technical ability of the supplier’s staff
5. In relation to the purchasing function, the term quality refers to:
a. highest price.
b. popularity of a menu item.
c. suitability for intended use.
d. standardized inspection grades.
6. A stockout can occur as a result of:
a. employing a perpetual inventory system.
b. over-purchasing.
c. inadequate menu engineering.
d. under-purchasing.
7. With the minimum/maximum ordering system, the maximum number of purchase units permitted in storage is
determined by the:
a. usage rate plus the minimum level.
b. usage rate plus the lead-time quantity.
c. lead-time quantity plus the safety level.
d. lead-time quantity minus the safety level.
16 464T Planning and Control for Food and Beverage Operations, Ninth Edition

8. Which of the following types of purchasing-related theft is characterized by a supplier trying to submit an
invoice for payment more than once?
a. nonexistent company fraud
b. reprocessing scheme
c. quality substitution theft
d. none of the above
9. Which of the following best characterizes the purchasing function of franchisees of a multi-unit food and
beverage company?
a. Franchisees may purchase products such as fresh produce and bakery items locally, but must buy all
other items from the franchisor company.
b. Franchisees are required to purchase all products—regardless of type—from their franchisors.
c. Franchisees are not required to purchase products from specific sources such as company commissaries,
but they are required by franchisors to adhere to company-developed specifications in products
purchased from any supplier.
d. Franchisees are permitted to purchase both food and non-food products for their operation from any
supplier without restriction.
10. Ownership of product is transferred from the supplier to the food and beverage operation when the receiving
employee signs the:
a. delivery invoice.
b. daily receiving report.
c. purchase order.
d. standard purchase specification sheet.
17 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 7 Storing and Issuing Controls

NAME: _____________________________________________________

DATE: _________________________________

1. Storing and issuing controls help the food and beverage manager in which of the following ways?
a. They help to keep products secure from theft.
b. They curb waste.
c. They track, record, and provide information necessary for the financial accounting system.
d. all of the above
2. To help make the receiving function secure and efficient, the physical transfer of food and beverage products to
the storage area should be the responsibility of:
a. supplier delivery personnel.
b. assigned staff from the property.
c. the food and beverage controller.
d. either a or c above.
3. How would fresh meats be categorized by an ABCD inventory classification system?
a. Class A: high in perishability and high in cost per serving
b. Class B: low in perishability and high in cost per serving
c. Class C: high in perishability and low in cost per serving
d. Class D: low in perishability and low in cost per serving
4. Which of the following statements about food products classified as “directs” is TRUE?
a. Usage rates and inventory levels determine the purchasing pattern for directs.
b. Directs are always recorded in inventory records.
c. Directs are usually considered part of the food costs for the day on which they are received.
d. Directs are controlled by a minimum/maximum inventory system.
5. At the Bay Restaurant, the dates stamped on food products in production areas are usually older than the dates
stamped on most of the same items held in storage. Which of the following best describes the inventory
rotation method of the restaurant?
a. ABCD system
b. LIFO (last in, first out) system
c. FIFO (first in, first out) system
d. weighted average system
6. Given the following information, calculate the inventory turnover rate for the month of March.
Food Inventory End of February: $28,000
Food Inventory End of March: $32,000
Cost of Food Used in March: $195,000
a. 6.09 times
b. 6.50 times
c. 6.96 times
d. 13.05 times
7. As the inventory turnover rate decreases for a food and beverage operation:
a. more money is being invested in inventory.
b. less money is being invested in inventory.
c. stockouts are likely to occur.
d. products in storage move more quickly to production areas.
18 464T Planning and Control for Food and Beverage Operations, Ninth Edition
19 464T Planning and Control for Food and Beverage Operations, Ninth Edition

8. Which of the following inventory valuation methods generally creates a higher total inventory value and a
lower cost of sales?
a. physical inventory valuation method
b. perpetual inventory valuation method
c. FIFO (first in, first out) valuation method
d. LIFO (last in, first out) valuation method
9. A key difference between radio-frequency identification (RFID) technology and bar code technology in the
inventory valuation process is that:
a. bar code technology requires the placement of transponder tags on all products received from suppliers.
b. RFID uses hand-held wireless scanning equipment for inventory counting.
c. bar code equipment is based on a weight-per-unit concept of inventory counting.
d. RFID eliminates the need for line-of-sight reading.
10. A well-designed food and beverage issuing system will:
a. limit access to storage areas.
b. assess quantities and costs of products removed from storage.
c. match items removed from storage with actual production requirements.
d. incorporate all of the above.
20 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 8 Production and Serving Controls

NAME: _____________________________________________________

DATE: _________________________________

1. Over the past eight Tuesdays, an average of 15 percent of the guests served at the Family Funtime Restaurant
ordered chicken dinners. The manager assumes that approximately the same percentage of guests will order
that entree this coming Tuesday night when 140 total guests are expected to be served. How many chicken
dinners should production areas be prepared to produce?
a. 15
b. 21
c. 30
d. 53
2. The Osborne Restaurant uses the weighted time series method to estimate food production requirements. Given
the following information about chicken dinners sold on Sundays, how many chicken dinners should
production areas be prepared to produce for the upcoming Sunday?
Dinners Sold Weight Factor
120 5
115 4
95 3
130 2
105 1
a. 105
b. 111
c. 114
d. 125
3. When forecasting food production requirements, managers should take into account __________ to help
control production quantities and reduce the amount of leftovers.
a. past sales figures
b. upcoming weather conditions
c. special community events
d. all of the above
4. Which of the following production control documents is used to determine the amount of menu item
ingredients to purchase for routine operations?
a. master food production planning worksheet
b. sales history records
c. special event notice
d. equipment schedule
5. The purpose of food and beverage production cost control tools is to:
a. provide quality food and beverage items to guests regardless of cost.
b. ensure quality while complying with cost limitations.
c. keep costs within established parameters, even if it means compromising somewhat on quality.
d. provide direction to junior-level food preparers and bartenders so that their productivity can quickly rise
to industry standard levels.
21 464T Planning and Control for Food and Beverage Operations, Ninth Edition

6. Which of the following positions coordinates communication between production and service staffs during
busy meal periods?
a. a runner
b. a busser
c. an expediter
d. a food checker
7. Which of the following types of keys typically found on the keyboard of a point-of-sale terminal enables
servers to specify preparation instructions for menu orders relayed to kitchen staff?
a. settlement keys
b. modifier keys
c. preset keys
d. inventory keys
8. Which of the following types of keys typically found on the keyboard of a point-of-sale terminal enables
servers to access open guest check accounts by serial number?
a. numeric keypad
b. settlement keys
c. modifier keys
d. preset keys
9. Which of the following features of a guest check printer uses bar code technology to eliminate the need for
servers to input a guest check serial number to access an account?
a. retained check printing
b. delayed check printing
c. automatic slip feed
d. automatic form number reader
10. Which of the following best identifies the components of an automated beverage control system?
a. an order entry device, a control unit, a delivery network, and a bar code reader
b. a bar code reader, a monitor, an order entry device, a control unit, and delivery network
c. a control unit, an order entry device, a delivery network, and a dispensing unit
d. a control unit, a bar code reader, a monitor, a delivery network, and a dispensing unit
22 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 9 Calculating Actual Food and Beverage Costs

NAME: _____________________________________________________

DATE: _________________________________

1. Given the following information, calculate the dollar amount of purchases made during the month.
Beginning Inventory $150,000
Ending Inventory $130,000
Cost of Sales $110,000
a. $ 60,000
b. $ 70,000
c. $ 90,000
d. $100,000
2. Given the following information, use the FIFO method to calculate the value of the inventory at the end of the
month.
Beginning Inventory 40 cases @ $20/case
Purchases 30 cases @ $22/case
Ending Inventory 35 cases
a. $700
b. $750
c. $760
d. $770
3. Given the following information, use the FIFO method to calculate the value of the inventory at the end of the
month.
Beginning Inventory 35 cases @ $20/case
Purchases 20 cases @ $22/case
Ending Inventory 25 cases
a. $500
b. $540
c. $550
d. $640

4. Given the following information, use the LIFO method to calculate the value of the inventory at the end of the
month.
Beginning Inventory 40 cases @ $20/case
Purchases 20 cases @ $22/case
Ending Inventory 30 cases
a. $600
b. $620
c. $640
d. $660
23 464T Planning and Control for Food and Beverage Operations, Ninth Edition

5. Given the following information, use the weighted average method to calculate the value of the inventory at
the end of the month.
Beginning Inventory 35 cases @ $20/case
Purchases 20 cases @ $22/case
Ending Inventory 25 cases
a. $500.00
b. $518.25
c. $550.00
d. $621.90
6. Given the following information, calculate the adjusted net cost of sales.
Beginning Inventory $80,000
Purchases $40,000
Food Transfers $ 1,000
Employee Meals $ 250
Ending Inventory $60,000
a. $40,000
b. $58,750
c. $60,000
d. $61,250
7. Which of the following adjustments increases the cost of food sold for a given month?
a. food transfers from the kitchen to the bar
b. costs of employee meals
c. the value of complimentary meals
d. transfers from the bar to the kitchen
8. Which of the following types of food purchases would most likely be stored and charged to food costs as they
are issued?
a. poultry
b. fresh produce
c. bakery products
d. dairy products
9. Which of the following types of food purchases would most likely be charged to food costs on the day they are
received?
a. poultry
b. flour
c. dairy products
d. frozen seafood
10. Providing a high level of security and accurate beverage information tracking, ______________ count and
record—by number of portions—the total amount of all beverages run through the system during a specific
shift.
a. automated dispensing systems
b. wireless scanning systems
c. digital scale systems
d. electronic sensing systems
24 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 10 Control: Analysis, Corrective Action, and Evaluation

NAME: _____________________________________________________

DATE: _________________________________

1. The easiest to use source of information for standard (expected) food and beverage costs is:
a. industry averages.
b. past financial statements.
c. operating budgets.
d. in-house standard costs.
2. Which of the following sources of information is the least reliable basis for developing cost standards for a
food and beverage operation?
a. industry averages
b. past financial statements
c. operating budgets
d. in-house standard costs
3. Year after year, the As-You-Like-It Bistro handles a large volume of business at lunch. The manager attributes
the operation’s success to radical menu changes every three months. Many of the new menu items result from
suggestions made by guests. Which of the following sources of information offers the manager the most
reliable basis for developing cost standards?
a. industry averages
b. past financial statements
c. operating budgets
d. in-house standard costs
4. The management team at the Four Corners Restaurant has agreed that only cost variances in excess of $1,000 a
month would be analyzed and corrected. Given the following information, which segment of the operation
signals the need for analysis and corrective action?
July Revenue Cost Variance
Breakfast $12,000 7%
Lunch $35,000 4%
Dinner $85,000 1%
Beverage Operation $45,000 2%
a. breakfast
b. lunch
c. dinner
d. beverage operation
5. For the previous month, actual food costs exceeded standard food costs at Buddy’s Bar & Grill. Which of the
following could have possibly caused the variance?
a. a significant change in the sales mix, with guests ordering menu items having high contribution margins
b. smaller portion sizes prepared by food production staff
c. food production staff using higher quality ingredients than called for by standard recipes
d. price cuts by suppliers during the month that weren’t reflected in the selling prices of affected menu
items
25 464T Planning and Control for Food and Beverage Operations, Ninth Edition

6. Last month at Emil’s Italian Restaurant, actual food costs fell below standard food costs. Which of the
following could be the reason?
a. failure to collect all revenue due
b. food production staff substituting lower quality ingredients than called for by standard recipes
c. larger portion sizes prepared by food production staff
d. higher prices charged by suppliers during the month that weren’t reflected in the selling prices of affected
menu items
7. When actual costs vary from standard costs, corrective action:
a. may be necessary.
b. is always necessary.
c. is necessary only if the variance exceeds five percent.
d. is necessary only if the variance exceeds $3,000.
8. Managers at the ABC Restaurant have uncovered a problem: food costs have been too high for two months in a
row. The restaurant’s managers are trying to decide who should be given the responsibility for taking corrective
action. One question the managers should ask themselves before assigning responsibility is:
a. How important is the problem?
b. How specialized is the problem?
c. Who is responsible for the area of concern?
d. all of the above
9. When evaluating the effectiveness of actions taken to correct a cost control problem, it is important that
managers:
a. do not evaluate too soon after taking corrective action.
b. choose an appropriate time frame for the evaluation.
c. determine whether another part of the control system has been negatively affected by the corrective
action taken.
d. all of the above
10. Computer technology helps managers in their control efforts by:
a. enabling them to produce timely computer-generated reports.
b. taking over decision-making responsibilities from them.
c. helping them “crunch the numbers.”
d. a and c
26 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 11 Revenue Control

NAME: _____________________________________________________

DATE: _________________________________

1. A duplicate guest check system in a nonautomated food and beverage operation is used by the server to:
a. request food from the storage area.
b. notify the production staff of items needed to fill an order.
c. fix any errors that may have occurred on the first order.
d. separate guest checks into two or more receipts when requested by guests.
2. In manual systems, food and beverage managers can identify differences between what food items were
produced and what items were served during a specific meal period by matching orders turned in to the kitchen
with:
a. sales forecasts.
b. cashier totals.
c. corresponding guest checks.
d. storeroom issue reports.
3. Which of the following reports would a manager check to review guest checks that were open but not closed at
the end of the meal period or server shift?
a. open guest checks report
b. productivity report
c. inventory usage report
d. password access report
4. With point-of-sale systems, the status of a guest check changes from “open” to “closed” when:
a. the server’s shift ends.
b. the cashier collects unused checks.
c. payment by the guest is entered into the system.
d. the kitchen completes the order.
5. With a __________ system, servers and bartenders use their own banks of money to collect payments from
guests and retain the collected revenue until they check out at the end of their shifts.
a. collusion
b. server banking
c. duplicate revenue
d. cashier banking
6. The Surf & Turf Restaurant uses the server banking system. Given the following information, what is the cash
due from the server before paying out charged tips?
Server A Opening Cash Bank $ 50.00
Total Sales from Guest Checks $450.00
American Express Charges $ 95.00
VISA Charges $150.00
Surf & Turf Gift Certificate $ 40.00
Complimentary Dinner $ 75.00
a. $90
b. $140
c. $205
d. $255
27 464T Planning and Control for Food and Beverage Operations, Ninth Edition

7. For effective internal control, end-of-shift register readings in a food and beverage operation using a cashier
banking system should be taken by:
a. the cashier responsible for the individual cashier station.
b. anyone other than the cashier responsible for the individual cashier station.
c. the manager receiving payments from guests and servers.
d. the food and beverage manager or a designated individual other than the cashier.
8. Which of the following types of reports generated by a point-of-sale system provides an analysis of each server
in terms of guest count, total revenue, and average revenue per guest?
a. daily server productivity report
b. transaction summary report
c. transaction audit report
d. open check report
9. Which of the following is not a way that guests are using technology in new ways to pay for their food and
beverage purchases?
a. Some smartphone apps allow guests to pay for meals using a personalized QR code.
b. Near-field communication (NFC) enables diners to tap their phones on an operation’s NFC-enabled
terminal to pay for their purchases.
c. INOX smartphone technology enables diners to determine the amount they would like to pay for food
and beverage products, overriding the restaurant’s pricing.
d. Some restaurants are using tablets in place of paper menus to display menu information and allow guests
to pay for their meals.
10. One advantage of an automated beverage control system is that it:
a. dispenses drinks according to the operation’s standard beverage recipes.
b. counts the number of drinks poured.
c. provides timely management reports.
d. all of the above
28 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 12 Preventing Revenue Theft

NAME: _____________________________________________________

DATE: _________________________________

1. Theresa is a bartender at the Blue Moon Tavern. She steals from the business periodically by adding guest
check totals in her head, collecting the full amount from the guests, but entering a lower total into the cash
register and pocketing the difference. This type of theft is called:
a. “no-ring” sales.
b. bunched sales.
c. freepouring.
d. underpouring.
2. Bottle marking can help food and beverage managers identify whether bartenders are:
a. diluting liquor products.
b. substituting lower-quality liquor for call brands.
c. substituting their own liquor for that used at the bar.
d. underpouring drinks.
3. Which of the following types of bartender theft would likely cause a rise in the number of guest complaints
about the quality of drinks served?
a. underpouring drinks
b. bunching sales
c. under-ringing sales
d. no-ring sales
4. Which of the following statements about the use of a shopper service by food and beverage operations is
TRUE?
a. Managers should meet with the shopper service representative only after the shopper has evaluated
control procedures at the operation.
b. The value of a shopper service should be measured by the number of thefts detected by the service
representative.
c. Shopper services analyze revenue transactions and rarely deal with issues of guest satisfaction.
d. Managers should periodically alert all employees that a shopper service is routinely employed to monitor
control procedures.
5. Lisa stormed into the kitchen and shouted a steak order across to Raymond, the broiler cook. She needed the
steak fast because of a late arrival to the party of eight in her section. Raymond refused to put the steak on
without the order being entered into the point-of-sale system. Lisa picked up orders for two other tables and
told Raymond to put the steak on now and she’d put the order in as soon as she could. Ten minutes later, Lisa
returned and Raymond still hadn’t started her steak order. Which of the following statements best characterizes
the interaction between the server and the broiler cook?
a. The broiler cook was wrong. Raymond should have started the steak order because Lisa was closer to
what was actually happening with guests in the dining room. The broiler cook’s job is to serve those who
serve guests.
b. The broiler cook was right. Overriding fundamental features of the control system should be approved by
a manager and not dictated by the frustrations of a busy server.
c. The broiler cook was right. Lisa is only concerned about losing a high tip from her party of eight.
d. The broiler cook was wrong. Raymond should have started the steak order because guest service
concerns should always override control procedures.
29 464T Planning and Control for Food and Beverage Operations, Ninth Edition

6. The manager at Lucky’s Restaurant tried to offset slightly higher food costs by running a dessert promotion
and found that food costs actually rose even higher after the promotion. Which of the following theft
statements would have the LEAST impact on food costs and would NOT be the likely cause of the problem?
a. Servers are not filling out guest checks or entering orders into the point-of-sale system; instead, they are
giving away desserts to increase their tips.
b. Servers are not recording dessert orders on guest checks or entering them into the point-of-sale system;
instead, they are pocketing revenue when guests pay by cash.
c. Servers are reusing checks for guests ordering identical desserts.
d. Servers are overstating guest check totals in hopes of getting higher tips.
7. Which of the following is a practical way to reduce the possibility of guests walking out of a restaurant before
paying their bills?
a. Ensure that there is only one exit from the dining room.
b. Install surveillance systems.
c. Position a cashier station at the entrance to the dining room.
d. Require payment at the time of ordering.
8. Employees may steal from guests by:
a. padding guest checks.
b. altering payment card charges after guests leave.
c. making change incorrectly by shortchanging or fast-counting.
d. all of the above
9. To help safeguard a food and beverage operation’s petty cash fund from theft, which of the following
procedures should be implemented?
a. The employee responsible for managing the fund should not have the authority to sign a check to
replenish the fund.
b. Checks to replenish the fund should be made out only to the manager of the fund.
c. Money to replenish the fund should be drawn from cash register funds.
d. Responsibility for the fund should be rotated among several staff members.
10. When possible, responsibility for collecting revenue, auditing guest checks, and preparing tallies of daily
revenue should be assigned to:
a. a single staff member.
b. individual(s) charged with preparing bank deposits.
c. a different employee for each task.
d. individual(s) responsible for paying bills.
30 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 13 Labor Cost Control

NAME: _____________________________________________________

DATE: _________________________________

1. One of the first steps in the employee recruitment process is to write a job ___________ that includes a
summary of the job, a list its major tasks, and the identity of its supervisor.
a. specification
b. description
c. requisition
d. recruiting advertisement
2. The Resort Ranch operates five food and beverage outlets in four buildings throughout the property. Which of
the following documents would the food and beverage manager use to show all employees the relationships
among positions throughout the ranch’s food and beverage operation?
a. organization charts
b. job descriptions
c. performance appraisal summaries
d. job specifications
3. The Jazz River Restaurant & Lounge is a small chain offering fine dining as well as late night entertainment.
To help unit managers hire the right job applicants, the corporate executive team developed a list of personal
qualities for managers to look for when selecting job applicants for open server positions and distributed the
list as a:
a. job description.
b. job specification.
c. performance appraisal form.
d. job analysis.
4. Which of the following selection tools would a food and beverage manager use first to determine if people
applying for open positions meet the minimum job qualifications?
a. reference checks
b. selection tests
c. application forms
d. applicant interviews
5. Which of the following selection tools is used primarily for verifying information provided by job applicants?
a. reference checks
b. selection tests
c. application forms
d. applicant interviews
6. The Marlin Steakhouse is a twenty-five-unit regional chain with lunch and dinner service offering steaks and
seafood. The company is only seven years old and, over the past year, opened a new unit each month. The
corporate management team decided to slow expansion plans and concentrate on improving the profitability of
operations. When analyzing the high costs of employee turnover, the corporate team discovered that 25 percent
of all turnover occurred within the first thirty days of employment. Which of the following actions would have
the greatest impact on reducing this type of employee turnover?
a. Develop an orientation program for new employees.
b. Implement training programs to refresh skills of veteran staff.
c. Increase the frequency of employee performance evaluations.
d. Simplify work processes by revising performance standards.
31 464T Planning and Control for Food and Beverage Operations, Ninth Edition

7. Which of the following should be the first step in revising performance standards?
a. Evaluate each idea and select the best approach.
b. Generate ideas for new ways to get the job done.
c. Collect and analyze information about current performance standards.
d. Test each new idea with a limited number of employees.
8. Broadening a job to include additional tasks is referred to as:
a. job simplification.
b. job enlargement.
c. job rotation.
d. job enrichment.
9. The manager of the Fork and Spoon Restaurant redesigned dishwashers’ jobs to include inventory functions
previously performed by supervisors. This is an example of:
a. job simplification.
b. job specification.
c. job rotation.
d. job enrichment.
10. For most managers, the turnover problem is worst among:
a. entry-level employees.
b. supervisory personnel.
c. mid-level managers.
d. top managers.
32 464T Planning and Control for Food and Beverage Operations, Ninth Edition

Chapter 14 Implementing Labor Cost Controls

NAME: _____________________________________________________

DATE: _________________________________

1. Which of the following tools helps a food and beverage manager determine labor standards for each position
and shift?
a. variance analysis
b. budgeted labor cost percentage
c. national staffing averages
d. position performance analysis
2. If the manager of a food and beverage operation wanted to emphasize productivity, as opposed to labor costs,
labor performance standards would best be expressed in terms of:
a. labor dollars.
b. labor hours.
c. variable labor.
d. fixed labor.
3. Which of the following statements about constructing a staffing guide is TRUE?
a. A staffing guide should be based on the productivity rates of average employees.
b. A staffing guide developed for one type of food and beverage operation is easily used by another type of
food and beverage operation.
c. A staffing guide should be developed for each department within a food and beverage operation.
d. A staffing guide should be developed for each position within each department of a food and beverage
operation.
4. When constructing staffing guides, managers should:
a. use the productivity rates of good employees as a basis to set labor standards for average employees.
b. keep productivity rates at the levels initially established, despite increases in employee efficiency and
proficiency.
c. rely strongly on standards developed in the industry for other similar operations.
d. incorporate all of the above points.
5. Which of the following staff positions are likely to have work schedules that vary in relation to changes in a
restaurant’s volume of business?
a. compressed staff positions
b. variable staff positions
c. shared staff positions
d. fixed staff position
6. Which of the following statements about fixed and variable labor is TRUE?
a. An unexpected increase in business volume will increase fixed labor expenses.
b. Managers have more control over fixed labor expenses than variable labor expenses.
c. A goal of food and beverage managers should be to eliminate all fixed labor expenses.
d. Fixed labor expenses are costs associated with the minimum number of employees needed to operate a
business.
7. Which of the following positions in a food and beverage operation is least likely to have a work schedule that
varies in relation to changes in business volume?
a. dishwasher
b. supervisor
c. cook
d. server
33 464T Planning and Control for Food and Beverage Operations, Ninth Edition
34 464T Planning and Control for Food and Beverage Operations, Ninth Edition

8. Which of the following work scheduling techniques is used to adequately staff a food and beverage operation
during periods of uneven work flows?
a. compressed work schedules
b. staggered work schedules
c. expanded work schedules
d. rotated work schedules
9. At the Fish Dish Restaurant, the forecast for Thursday afternoon’s lunch period was 200 meals served. The
manager used the restaurant’s staffing guide to schedule employees to work and ended the lunch shift with total
labor costs of $425. If the actual lunch revenue amounted to $1,250 and the budgeted lunch labor cost
percentage for the month was 32 percent, how close to budget were the labor costs for Thursday’s lunch
period?
a. 2 percent over budget
b. 2 percent under budget
c. 16 percent over budget
d. 16 percent under budget
10. Actual hours worked by the staff at the Steakhouse Restaurant exceeded scheduled labor hours by an average
of 15 hours a week. If the average hourly wage for staff is $7 and the budgeted profit margin is 10 percent, how
much additional revenue must be generated during the year to cover the unscheduled increase in labor costs?
a. $5,460
b. $8,320
c. $54,600
d. $83,200