What is a standard for controlling production volume? - correct answer used to determine and produce, for any menu item, the number of portions that is
... [Show More] likely to be sold on any given day. It is essential that foodservice establishments know this number with some reasonable degree of accuracy, so that intelligent plans can be made for purchasing and production
To control production volume, 3 standard procedures are required? - correct answer 1.maintaing sales history
2. forecasting portion sales
3. determining production quantities
Sales history: - correct answer written record of the number of portions of each menu item sold every time that item appears on the menu....it is a summary of portion sales
can be kept manually or electronically
gives you a popularity of items and helps to plan foods needed on a daily and weekly basis
Manual Sales portion: - correct answer Someone keeps a score sheet of each entree chosen for the night, off the checks from each patron as they pay, then turns in to book keeper at the end of the night
Electronic Sales portion: - correct answer Three methods for putting this information into the computer. 1. depressing a key on an electronic terminal marked with the name of the menu item selected
2. variation of the first method using a touch-screen computer screen, server touches the menu item displayed on the monitor
3. server presses a 2 or 3 digit code for each menu item selected
Portion sales outcome: - correct answer at the end of the day or a meal period management can obtain a printout from the terminal listing all menu items available and the number of portions of each that was sold
Popularity index: - correct answer defined as the ratio of portion sales for a given menu item to total portion sales for all menu items then multiply by 100 in order to covert to a percentage
Sales forecasting: - correct answer process in which managers use data and intuition to predict what is likely to occur in the future. this is a principal element in cost control
Forecast portion sales of a given item: - correct answer total forecasted portion sales X by the decimal equivalent of the popularity index for a given item
popularity index / 100 = decimal equivalent of PI
anticipated sales: - correct answer after the forecast of portion sales has been done for every item that will appear on the menu, the result is a forecast of anticipated sales for a particular day or period
physical inventory: - correct answer counting the actual number of units on hand of each item in stock and recording that number in an appropriate place
to finish the inventory one records the unit cost of each prodct and multiplies it by the number of units of that product in the physical inventory. This gives you the total dollar value of all items in inventory. This figure is known as closing inventory and will become the opening inventory for the next period
How to value physical inventory: - correct answer all purchases may not have been made at the same price
five possible ways to assigning values to unit of product in a physical inventory:
1. actual purchase price method
2. first-in, first-out method
3. weighted-average purchase price method
4. latest purchase price method
5. last-in first-out method
F&B managers must be familiar with all of these methods as any could be used at any place.
Food Cost Percent (Cost to Sales Ratio): - correct answer Cost of food sold / food sales = food cost %
useful when compared with figures for similar periods in the past ex. the same month from the last year or two consecutive months in a row
cost percent is often used as a mean s for monitoring operations and judging the effectiveness of control procedures
inventory turnover: - correct answer rate of inventory turnover- ex. if store purchases, consumes, and replenished its food inventory 2X each month its rate of inventory turnover would be 24 times each year.
Not every item turns over exactly twice during the period
average inventory: - correct answer opening inventory + closing inventory / 2
inventory turnover calculation: - correct answer cost of food sold / average inventory
Sales control: - correct answer merely a synonym for revenue control, a collection of activities designed to ensure that each order placed by a customer results in appropriate revenue for the enterprise
3 goals of sales control:
1. optimizing the number of customers
2. maximizing profit
3. controlling revenue
Price sensitivity: - correct answer there is a relationship between sales price and sales volume.
As the price of a menu item is increased, it can be expected that fewer customers will order that item [Show Less]