BASIC COST CONTROL

Choose the correct definition of cost control

• the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process.

• the practice of finding the cost and profit for a business while maintaining a certain budget

• controlling a cost to maintain an expenses for a business to prosper

• to control the output and input of a business

How many techniques are there in the control techniques for cost control?

• 10

• 7

• 4

• 8

What is the definition of Fixed Cost in cost control?

• Are cost that when the business is expanding or reducing

• Are cost that do not change significantly when the number of sales increases or decreases

• Are cost that changes significantly when the number of sales increases or decreases

• Are cost that when the number of sales increases or decreases

  will affect the business

What is Variable Cost in cost control?

• As the business volume increases, variable costs will increase, and if the business volume decrease then the variable cost decrease as well.

• Is a cost that remains the same even when the company is expanding

• As the business volume increases, variable costs will decrease, and if the business volume decrease then the variable cost increase as well.

• Variable cost is the cost that covers the expenses of a business and reduce the level of profit

Which of the is the correct examples of Fixed Cost?

• Working hours, staff employments and managers fee

• Ingredients cost, maintenance fee and company cost.

• Equipment price, food price and beverage price.

• Insurance premiums, real estate taxes and depreciation of equipment.

Which of these are the examples of Variable Cost?

• Exhibition cost, premise cost and public cost.

• Brands cost, cost of premises and taxes.

• Taxes rates, cars and equipment.

• Food, beverages, and labour.

This means the untrimmed quantity, in the same form in which it is purchased this is the amount you pay for. This refers to what exactly?

• AP - Account Purchased

• AP - Available Purchases

• AP - Annual Purchased

• AP - As Purchased

This means the raw, uncooked quantity after all the trimming is done. This refers to what exactly?

• EP - Expenses Purchase

• EP - Edible Portion

• EP - Extraordinary Pruchases

• EP - Exact Portion

Percentage = food cost ÷ menu. What is this formula use to calculate?

• Food cost percentage

• Food cost percentile

• Food price percentage

• Food cost calculation

$20,000 beginning inventory, $5,000 in purchases, $18,500 ending inventory, $10,000 in sales. Based on the data given what is the food cost percentage?

Please calculate using the formula : FC% = (BI + P - EI) / S

• 65%

• 77%

• 64%

• 78%