WorksheetsCost Control Quiz
Total questions: 15
Worksheet time: 8mins
What does cost refer to in the context of business?
A method of cost control
A type of fixed cost
An increase in sales volume
A reduction in the value of an asset
In the food and beverage business, how is cost defined?
The value of assets owned
The total revenue generated
The expense incurred for goods or services
The profit made from sales
When is the cost of a piece of meat incurred?
When it is ordered
When it is cooked, served, or spoiled
When it is purchased
When it is stored
What are fixed costs?
Costs that vary with sales volume
Costs that can be easily controlled
Costs that remain constant regardless of sales volume
Costs that are always high
Which of the following is an example of a fixed cost?
Labor costs
Food costs
Insurance premiums
Utility bills
What are variable costs?
Costs that do not change with sales volume
Costs that are always fixed
Costs that can be ignored
Costs that are directly related to business volume
Which of the following is a directly variable cost?
Salaries of fixed personnel
Depreciation
Rent
Cost of food sold
What is a semivariable cost?
A cost that cannot be controlled
A cost that has both fixed and variable elements
A cost that is always variable
A cost that is always fixed
What are controllable costs?
Costs that cannot be changed in the short term
Costs that are always variable
Costs that can be changed in the short term
Costs that are always fixed
Which of the following is a noncontrollable cost?
Food costs
Labor costs
Rent
Variable labor costs
What is the prime cost formula?
Raw Material Cost + Direct Labor Cost
Total Cost - Variable Cost
Raw Material Cost + Fixed Labor Cost
Fixed Cost + Variable Cost
What are historical costs used for?
Reducing fixed costs
Increasing sales volume
Establishing future costs
Determining menu prices
What is the purpose of planned costs?
To analyze past performance
To project future costs
To determine fixed costs
To calculate variable costs
Which of the following is NOT a type of cost discussed?
Inflation Cost
Variable Cost
Fixed Cost
Controllable Cost
What is the relationship between variable costs and business volume?
They are always fixed
They are unrelated
They are directly related
They are inversely related
