Archives: Quiz

Absorption costing is also referred to as full costing. Identifying whether a measure is a leading or lagging indicator can be difficult, because a lagging indicator of one event can be a leading indicator of another. Answer: True Probably the […]

When preparing the statement of cash flows using the indirect method, gains from financing activities are added to net income to arrive at cash flows from operating activities. When the budget being used is a static budget, the difference between […]

A helpful approach to examine changes in the relative size of account balances within a single statement is referred to as horizontal analysis. Applied overhead is calculated by dividing the actual activity level of application base by the predetermined overhead […]

The cost of selling goods and administrative costs are reported on the income statement as expenses when inventory is sold. Activities that affect a company’s investments in assets other than current operating assets are called financing activities. Answer: False Activities […]

In their book Killer Customers, Larry Selden and Geoffrey Colvin estimate that the bottom 5% of a company’s customers lose as much as 100% of the company’s profits. The job order sheets are the subsidiary ledger that supports the Finished […]

The payback period is the time it takes, in years, for an investment to return the original amount of invested capital. Identifying the activities performed in the organization is the most time consuming part of implementing an activity-based costing system. […]

On the cash flow statement, paying a cash dividend to stockholders is a financing activity. Any return a company receives over and above the original investment in a capital asset is called return on investment. Answer: True The task of […]

The first section of the cash budget reconciles the cash available to the borrowing required to meet the minimum cash balance. A decrease in accounts payable is added to net income when using the indirect method of calculating cash flows […]

Two major weaknesses of the accounting rate of return are that it does not consider cash flows and it is the least accurate capital budgeting technique. A bottom-up approach to budgeting is circular while a top-down approach is linear. Answer: […]

Since the cash budget drives all other components of the master budget, it is imperative that it be as realistic as possible. Variances have very important meanings, even before their causes are identified. Answer: False Variances have little meanings until […]

The two categories – valued-added and non-value added – are defined from the organization’s management perspective. The major factor in the amount of material used in production is the quality of the material. Answer: True The Theory of Constraints seeks […]

Uses of cash are activities that require cash disbursements, which always decrease the amount of cash on hand. To adjust for underapplied overhead, the journal entry includes a debit to Cost of Goods Sold and a credit to Manufacturing Overhead […]

The master budget is an example of a flexible budget. Manufacturing Overhead is a temporary account that must have a zero balance at the end of the accounting period. Answer: True The inventories used in a process costing system are […]

How many servings will you get from 5 gallon/s of ice cream if a #16 scoop is used? (Round your answer to whole number.) ______________ servings (scoops) A party of 12 people was served. The bill was $277.00. A discount […]

How many 4-pound bags of Sichuan vegetable mix must be opened to serve 55 people if each one is to receive a 3-ounce serving? (Round your answers to whole number.) ______________ bags Recently, the trend has been to compare vendor […]

Convert measurements from the American customary system to the metric system. Round answers to nearest whole number. 4 pounds 4 ounces = _______________ grams The formula to determine the break-even point is to take the fixed costs and divide them […]

577 fluid ounces = _______________ liters Standardized recipes are ideal for food service operations such as nursing homes, retirement villages, and some school cafeterias. Answer: T “Standardized recipes are ideal for food service operations such as nursing homes, retirement villages, […]

Fill in the cash report. Answer:$6,532.38 $7,050.63 Keeping in mind that flour is the main ingredient, ____________________ ____________________ designate the amount of each ingredient that would be required if 100 pounds of flour were used. Answer:baker’s percentages bakers percentages Food […]

The daily sales are $4,750. Find the daily labor cost percentage if the Chef makes $1,140 a week and works six days a week. _______________% Back out the sales tax or gratuity from the following problems. Show the sales tax […]

A ____________________ is generally a percentage of sales for a given period. Rhonda sells 12 additional $5.40 appetizers each shift. If the gratuity is 35%, what is her additional income? $_______________ Answer: 22.68 Percentage of cost of food sold plus […]

For a banquet, each guest pays $71.00, inclusive. A gratuity of 15% will have to be backed out. Sales tax: $_______________ ____________________ is a plan for adjusting expenditures to probable income for a calendar or fiscal year. Answer: Budgeting One […]

The forms used in compiling the daily food production reports are not dependent on the individual food service operation. Lily purchased a new convection oven for $10,177, tax included. The sales tax was 8 3/4%. Amount of money for the […]

Divisor divided by Dividend equals Quotient. The metric unit of measurement for volume is called a ____________________. Answer: liter Round off each answer to hundredths place. The menu price of a glass of wine is $6.25. The raw cost of […]

A working factor is defined as a relation in size, number, amount, or degree of one thing compared to another. In ____________________,a whole number is added to itself a specified amount of times. Answer: multiplication One gram is about the […]

The metric unit of measurement for temperature is called ____________________. Complete the following production report. Find the portions to prepare and how many items were sold. Answer: Celsius Find the difference in each problem. 63.63 – 9.96 =_______________ Answer: 53.67 […]

In the metric system, temperature is measured in degrees Celsius (°C). On the Celsius scale, the boiling point of water is 100° and the freezing point is 0°. ____________________ ____________________ ____________________ is a mathematical method for finding the dollar amount […]

The term ____________________ means “that which is paid or received for services” and includes salaries, commissions, fees, bonuses, tips, and so forth. A 2-pound bag of freeze dried baby carrots costs $0.81 per pound. What is the cost of a […]

In most food service operations, one person is designated to do the purchasing. This person is usually called the ____________________ ____________________. When preparing a fruit salad bowl, the following items were used: honeydew melon $3.59, pineapples $0.98, grapes $0.62, bananas […]

Solve the following problems using the proportions given. How many quarts of chicken stock are needed to bake 1 1/2 quarts of rice using a ratio of 2 to 1 stock to rice? _______________ quarts ____________________ ____________________ are taxes collected […]

65 milliliters = _______________ teaspoons ____________________ ____________________ is a term used to refer to the weight of a product as it was purchased. Answer: As purchased A payroll is a record of earnings kept by the employer on all persons […]

An example of a proportion is when preparing baked beans, the ratio is 2 to 1, that is, 2 parts liquid to 1 part beans. 52 pints equals _______________ quarts Answer: 26 An invoice is a demand, usually made in […]

In the problems or statements following, the symbol of operation has been omitted. In each instance, determine the symbol that should be placed in the blank. 975 _______________ 25 = 1,000 Guest check $103.92, Sales tax 6 1/8%. $_______________ Answer: […]

In a budget, the areas listed under the two major components, ____________________ and expenditures, will vary, depending on the size of the overall operation. Food in Production: $2,401 Sales: $69,271 Inventory at Beginning of Month: $5,366 Purchases for the Month: […]

The ____________________ ____________________ is a statement listing all the company’s assets and liabilities to determine net worth, proprietorship, or capital. If the yield percentage for salmon is 60.5%, how many pounds will have to be ordered to serve 45 guests? […]

18 cups = ______ oz. A ____________________ refers to two or more numerals that, when multiplied together, yield a given product. Answer: factor In the problems or statements following, the symbol of operation has been omitted. In each instance, determine […]

The first step in the use of any calculator is to make sure it is cleared. There is a party for 90; our recipe yields 30 portions. Answer: 3 The standardized recipe is for 400 portions. The party is for […]

Given the total sales = $356,556 If the cost of produce = $30,965.82 Find the food cost percent for produce. _______________% Food in Production: $3,094 Sales: $73,803 Inventory at Beginning of Month: $4,574 Purchases for the Month: $30,784 Final Inventory: […]

The result of dividing the dividend by the divisor is called the ____________________. A product that is ready to be served to the guests is called a(n) __________________ __________________. Answer: edible portion A wedding reception is catered for 125 people. […]

A(n) ____________________ ____________________ is a list of food items issued from the storeroom upon the request of the production crew. The amount of gratuity received was $16.50. How much was the check if the tip was 25%? ________ Answer: $66.00 […]

If a 5 1/2-pound box of frozen cut broccoli costs $3.7, what is the cost of a 7 1/2-ounce serving? $_______________/serving ____________________ ____________________ refers to money that is owed to the company by various people or companies for various reasons. […]

Purchases + beginning inventory – food in production – final inventory = Cost of food sold The ____________________ ____________________ ____________________ is money withheld from each employee’s paycheck during the year to pay for the income tax that he or she […]

Labor costs are moneys spent to prepare any and all products used in an individual recipe or an entire meal. Subtraction means to take away. It is the addition of one number of things from another number of things. Answer: […]

How many 3 oz. glasses of wine can be obtained from a wine bottle that holds 475 ml? Tipping, also referred to as a(n) ____________________, is the giving of a fee for a service rendered. Answer: gratuity A portion scale […]

The sales of January 21 in the ZZZZ Restaurant were $10,620.00 and $10,430.00 in the bar. The cost of food was $3,870.00, and the bar costs were $1,830.00. The amount of food that was sent from the kitchen to the […]

What is the menu price using the multiplier of 2.9 if the raw food cost is $06? $_______________ A(n) ____________________ is used to represent the value of one hundredth part of a dollar. Answer: cent A budget can be made […]

A ________________________________________ is a whole number mixed with a fractional part. 180 meters = _______________ feet Answer: 591 In situations where the divisor is not contained in the dividend an equal or exact number of times, the figure left over […]

Convert the following Celsius temperatures to Fahrenheit. Round off all answers to two places to the right of the decimal point. -24 State taxes are established and enforced by federal law so that each individual citizen pays what he or […]

0.653 pounds = _______________ ounces The third place to the right of the decimal is called a(n) ____________________ and represents the thousandth part of a dollar, or one-tenth of one cent. Answer: mill A chef earns $232.51 a day. How […]

Depreciation is the act of replacing an item as it wears out. In the food service industry, the bill or bill of sale is called a ____________________ ____________________. Answer: guest check 650 liters = _______________ quarts Answer: 689 Rewrite the […]

When dealing with monetary numbers, the term cent is used to represent the value of one hundredth part of a dollar. At the end of a certain period of time (for example, one month, three months, etc.-each banking institution has […]