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BASIC COST CONTROL

Total questions: 10

Worksheet time: 22mins

Name
Class
Date
1.

Choose the correct definition of cost control

a)

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

b)

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

c)

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

d)

to control the output and input of a business

2.

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

a)

10

b)

7

c)

4

d)

8

3.

What is the definition of Fixed Cost in cost control?

a)

Are cost that when the business is expanding or reducing

b)

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

c)

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

d)

Are cost that when the number of sales increases or decreases

will affect the business

4.

What is Variable Cost in cost control?

a)

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

b)

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

c)

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

d)

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

5.

Which of the is the correct examples of Fixed Cost?

a)

Working hours, staff employments and managers fee

b)

Ingredients cost, maintenance fee and company cost.

c)

Equipment price, food price and beverage price.

d)

Insurance premiums, real estate taxes and depreciation of equipment.

6.

Which of these are the examples of Variable Cost?

a)

Exhibition cost, premise cost and public cost.

b)

Brands cost, cost of premises and taxes.

c)

Taxes rates, cars and equipment.

d)

Food, beverages, and labour.

7.

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?

a)

AP - Account Purchased

b)

AP - Available Purchases

c)

AP - Annual Purchased

d)

AP - As Purchased

8.

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

a)

EP - Expenses Purchase

b)

EP - Edible Portion

c)

EP - Extraordinary Pruchases

d)

EP - Exact Portion

9.

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

a)

Food cost percentage

b)

Food cost percentile

c)

Food price percentage

d)

Food cost calculation

10.

$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

a)

65%

b)

77%

c)

64%

d)

78%