Purchasing Chapter 3 Review your Learning

How do excessive quantities of products in inventory impact the operation’s cash flow?

• They increase product cost.

• They require an increase in menu item selling prices.

• They tie up cash that could be used for other purposes.

• They limit the ability of buyers to negotiate for better prices.

Forecasts indicate that 530 customers will be served Saturday night and 17 percent will order sirloin steaks. How many sirloin steaks will be served?

• 30

• 60

• 90

• 120

Some POS systems track sales and determine the quantity of ingredients that should have been used by referencing

• Purchase requisitions.

• Production forecasts.

• Standardized recipes.

• Yield tests.

A meat item costs $14.36 per pound (AP) and has an edible yield of 72 percent. What is the approximate cost per servable pound?

• $5.40

• $12.95

• $15.60

• $19.95

What is the food cost for one portion of steak (100 percent yield) if a 4-ounce serving is used and the steak costs $12.80 per pound?

• $3.20

• $6.40

• $7.80

• $9.10

A purchaser wants to order highly perishable products for immediate use. She needs 12 cases and currently has 2.5 cases available. How many cases will she normally purchase?

• 8.5

• 9

• 9.5

• 10

The purchaser has set a par level of 8 cases of lettuce. One case will be used between order and delivery, and 2 cases are currently available. How many cases need to be purchased?

• 4

• 5

• 6

• 7

Which products should the minimum–maximum inventory system be used for?

• Perishable products

• Inexpensive products

• Low-volume products

• Nonperishable products

A petty cash system is typically used with which type of purchasing system?

• Open market purchasing

• Periodic ordering system

• Exact requirements system

• Total requirements contract

Which purchasing system involves buying food products in relatively small quantities?

• Just-in-time purchasing

• Definite quantity contract

• Cooperative (pool) buying

• Total requirements contract