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Controlling Food Service Costs Chapter 1 Key Terms

Total questions: 18

Worksheet time: 18mins

Name
Class
Date
1.

Controllable cost

a)

A cost over which a manager has little or no control.

b)

An operation’s total food cost, beverage cost, and labor cost for a specific time period, usually a week or a month.

c)

A cost that a manager can directly control.

d)

A cost that increases and decreases in direct proportion to sales.

2.

Variance

a)

The difference between actual results (i.e., sales) and targeted or budgeted results.

b)

The dollar amount that remains after all expenses are paid.

c)

The proportion or percentage of expense items to sales.

d)

A situation that occurs when an operation’s expenses are greater than its sales.

3.

Line item review

a)

The dollar amount the establishment has taken in for food and beverages.

b)

The measures established for making comparisons and judgments about the degree of excellence in operations.

c)

The difference between actual results (i.e., sales) and targeted or budgeted results.

d)

The checking of every item on the budget against actual figures, and noting the difference, or variance.

4.

Fixed cost

a)

An operation’s total food cost, beverage cost, and labor cost for a specific time period, usually a week or a month.

b)

A cost that remains the same regardless of sales volume.

c)

A cost that increases and decreases as sales increase and decrease, but not in direct proportion.

d)

A cost that a manager can directly control.

5.

Sales

a)

A cost that increases and decreases in direct proportion to sales.

b)

The dollar amount that remains after all expenses are paid.

c)

The dollar amount the establishment has taken in for food and beverages.

d)

The measures established for making comparisons and judgments about the degree of excellence in operations.

6.

Operational standard

a)

A standard that refers to weight, count, or volume measure, such as portion sizes for menu foods and beverages, and employee production standards such as one cook per 50 covers.

b)

The measures established for making comparisons and judgments about the degree of excellence in operations.

c)

The checking of every item on the budget against actual figures, and noting the difference, or variance.

d)

Steps that are taken to address a problem.

7.

Controls

a)

A series of coordinated actions that help keep financial results within an acceptable target range.

b)

The checking of every item on the budget against actual figures, and noting the difference, or variance.

c)

A cost that a manager can directly control.

d)

The proportion or percentage of expense items to sales.

8.

Variable cost

a)

An operation’s total food cost, beverage cost, and labor cost for a specific time period, usually a week or a month.

b)

A cost that increases and decreases in direct proportion to sales.

c)

A cost that increases and decreases as sales increase and decrease, but not in direct proportion.

d)

A cost that remains the same regardless of sales volume.

9.

Corrective action

a)

Steps that are taken to address a problem.

b)

A standard that sets the degree of excellence of raw materials, finished products, and production standards for the employees.

c)

The measures established for making comparisons and judgments about the degree of excellence in operations.

d)

The difference between actual results (i.e., sales) and targeted or budgeted results.

10.

Quality standard

a)

A situation that occurs when an operation’s expenses are greater than its sales.

b)

A standard that refers to weight, count, or volume measure, such as portion sizes for menu foods and beverages, and employee production standards such as one cook per 50 covers.

c)

A standard that sets the degree of excellence of raw materials, finished products, and production standards for the employees.

d)

The measures established for making comparisons and judgments about the degree of excellence in operations.

11.

Prime cost

a)

A cost that increases and decreases in direct proportion to sales.

b)

An operation’s total food cost, beverage cost, and labor cost for a specific time period, usually a week or a month.

c)

A cost that increases and decreases as sales increase and decrease, but not in direct proportion.

d)

A cost that a manager can directly control.

12.

Cover

a)

The dollar amount the establishment has taken in for food and beverages.

b)

A cost that remains the same regardless of sales volume.

c)

The dollar amount that remains after all expenses are paid.

d)

One meal served to a customer.

13.

Semivariable cost

a)

An operation’s total food cost, beverage cost, and labor cost for a specific time period, usually a week or a month.

b)

A cost that increases and decreases as sales increase and decrease, but not in direct proportion.

c)

A cost that increases and decreases in direct proportion to sales.

d)

A cost that a manager can directly control.

14.

Cost structure

a)

The proportion or percentage of expense items to sales.

b)

An operation’s total food cost, beverage cost, and labor cost for a specific time period, usually a week or a month.

c)

The difference between actual results (i.e., sales) and targeted or budgeted results.

d)

A cost that remains the same regardless of sales volume.

15.

Quantity standard

a)

The measures established for making comparisons and judgments about the degree of excellence in operations.

b)

A standard that sets the degree of excellence of raw materials, finished products, and production standards for the employees.

c)

The difference between actual results (i.e., sales) and targeted or budgeted results.

d)

A standard that refers to weight, count, or volume measure, such as portion sizes for menu foods and beverages, and employee production standards such as one cook per 50 covers.

16.

Profit

a)

The dollar amount the establishment has taken in for food and beverages.

b)

A cost that increases and decreases in direct proportion to sales.

c)

The dollar amount that remains after all expenses are paid.

d)

The proportion or percentage of expense items to sales.

17.

Noncontrollable cost

a)

A cost over which a manager has little or no control.

b)

A cost that a manager can directly control.

c)

An operation’s total food cost, beverage cost, and labor cost for a specific time period, usually a week or a month.

d)

A cost that increases and decreases as sales increase and decrease, but not in direct proportion.

18.

Loss

a)

Steps that are taken to address a problem.

b)

A situation that occurs when an operation’s expenses are greater than its sales.

c)

One meal served to a customer.

d)

The dollar amount that remains after all expenses are paid.