Ch. 11 Pricing & Profitability

Rock Salt Grille strives daily to manage how much money it spends. This is called:

• cash control

• debt consolidation

• cost control

• financial independence

The South Mountain Restaurant has these three controllable costs:

• utilities, equipment, and food

• equipment, food, and beverage

• food, beverage, and labor

• rent, utilities, and labor

Which term refers to the policies and procedures an operation uses to handle payments (cash and credit cards)?

• cash flow

• financial accounting

• cost control

• cash control

Overhead refers to which two of the following? (Choose 2)

• Insurance

• Lights

• Labor

• Food

Antonio's Restaurant generated $750,000 in food revenue during the month of April. The restaurant's food cost for that same month was $375,000. What was Antonio's food cost percentage for the month of April? (Food cost/Revenue=Food Cost Percentage)

• 20%

• 30%

• 40%

• 50%

Identify the "variable" expense below (not fixed).

• Property taxes

• Liability insurance

• Monthly rent

• Food supplies

The owner of Johannson's Restaurant is trying to calculate the pour cost percentage for its most popular drink. The cost to make the cocktail is $2.00 and the sales price of the cocktail is $8.00. What is the pour cost percentage?

• 2%

• 25%

• 250%

• 2500%

The manager at Chipotle is calculating the sales price for a portion of ground beef. It costs the restaurant $4.00 and the desired food percentage is 30%. What is the correct menu price of the beef?

Cost per Portion / Desired Food Cost % = Menu Price

• $4.30

• $13.33

• $25

• $30

The highest expense in a food service operation is which of the following?

• Labor

• Food

• Utilities

• Beverages

This document is a financial plan for a specific period of time:

• cash flow statement

• profit and loss statement

• operating budget

• balance sheet