Purchasing and Cost Controls - Week 4

Perishables "generally" use a par stock order method

• True

• False

The benefit or benefits of a standard purchase specification

• Help with menu preparation

• Help both the purchaser and the vendor know what is required

• Opportunity to bid on items

• All of the answers are correct

Food and beverage inventory are current assets

• True

• False

Infrequent ordering

• Par Stock

• Periodic Ordering

• Perpetual Ordering

• FIFO

Quantity of product on hand until the next delivery date is the desired ending inventory

• True

• False

In order for perpetual ordering to be successful, accurate records are required on an ongoing basis

• True

• False

The number of units that inventory on hand should decrease to before another order is placed

• Normal Usage

• Desired Ending Inventory

• FIFO

• Reorder Point

A purchase order is the same as an invoice

• True

• False

Purchase requisitions are generally used for larger hospitality operations.

• True

• False

A purchase requisition should include price and quantity

• True

• False