Question 1

Two principal causes of excessive costs are inefficiency and waste.

Accepted Answer

A) True 
 B)False  True

Question 2

A budget is a forecast of sales activity and an estimate of the costs that will be incurred in the process of generating those sales.

Accepted Answer

A) True 
 B)False  True

Question 3

A financial plan prepared for more than one level of business activity is known as a:

Accepted Answer

A)   flexible budget
B)   budget
C)   static budgetD) A) and B)
E) All of the above

Question 4

A control system is the sum of all control techniques in use in a given establishment, as well as the means by which they are implemented.

Accepted Answer

A) True 
 B)False

Question 5

If the standard cost of a one ounce drink is $.50 and the actual cost of the drink is $.55, the excessive cost in 10 such drinks is:

Accepted Answer

A)   $.05.
B)   $.50.
C)   neither (a.)  nor (b.)  is correct.D) All of the above
E) B) and C)

Question 6

Portion size is one example of a common quality standard.

Accepted Answer

A) True 
 B)False  False

Question 7

Quantity standards are:

Accepted Answer

A)   measures of weight, count, or volume.
B)   rules for making comparisons and judgements.
C)   used for making judgements about the degree of excellence of raw materials and finished products.D) A) and B)
E) All of the above

Question 8

Requiring records and reports is a:

Accepted Answer

A)   quantity standard.
B)   quality standard.
C)   neither (a.)  nor (b.)  is correct.D) B) and C)
E) A) and B)

Question 9

The relationship between the cost incurred in instituting and maintaining a control and the benefit generated by that is:

Accepted Answer

A)   a credit.
B)   cost control.
C)   cost/benefit ratio.D) None of the above
E) B) and C)

Question 10

Developing appropriate standards and standard procedures for an operation establishes effective control.

Accepted Answer

A) True 
 B)False

Question 11

Standard costs are agreed-upon costs used to measure other costs.

Accepted Answer

A) True 
 B)False

Question 12

Cost control is a process by means of which managers attempt to reduce costs to the absolute minimum.

Accepted Answer

A) True 
 B)False

Question 13

The four-step control process discussed in the chapter is applicable to any enterprise in which control must be instituted.

Accepted Answer

A) True 
 B)False

Question 14

The people whose actions must be controlled in food and beverage operations are employees, customers, and intruders.

Accepted Answer

A) True 
 B)False

Question 15

In the final analysis, ultimate responsibility for control rests with the individual employee.

Accepted Answer

A) True 
 B)False

Question 16

The second step in the control process is:

Accepted Answer

A)   taking corrective action.
B)   training employees
C)   monitoring employees' performanceD) All of the above
E) A) and B)

Question 17

The manager of a nearby restaurant has established procedure for servers to follow when placing food on a diner's table. This is an example of a:

Accepted Answer

A)   quality standard.
B)   quantity standard.
C)   neither (a.)  nor (b.)  is correct.D) All of the above
E) A) and C)

Question 18

Taking corrective action when necessary is the second step in the control process.

Accepted Answer

A) True 
 B)False

Question 19

The third step in the control process is:

Accepted Answer

A)   training employees.
B)   taking corrective action.
C)   neither (a.)  nor (b.)  is correct.D) A) and B)
E) A) and C)

Question 20

Standards and standard procedures for preparing any given menu item are typically the same from one restaurant to another.

Accepted Answer

A) True 
 B)False

Exam 2: The Control Process

Two principal causes of excessive costs are inefficiency and waste.

Correct AnswerverifiedTrue

A budget is a forecast of sales activity and an estimate of the costs that will be incurred in the process of generating those sales.

Correct AnswerverifiedTrue

A financial plan prepared for more than one level of business activity is known as a:

Correct AnswerverifiedShow Answer

A control system is the sum of all control techniques in use in a given establishment, as well as the means by which they are implemented.

Correct AnswerverifiedShow Answer

If the standard cost of a one ounce drink is $.50 and the actual cost of the drink is $.55, the excessive cost in 10 such drinks is:

Correct AnswerverifiedShow Answer

Portion size is one example of a common quality standard.

Correct AnswerverifiedFalse

Quantity standards are:

Correct AnswerverifiedShow Answer

Requiring records and reports is a:

Correct AnswerverifiedShow Answer

The relationship between the cost incurred in instituting and maintaining a control and the benefit generated by that is:

Correct AnswerverifiedShow Answer

Developing appropriate standards and standard procedures for an operation establishes effective control.

Correct AnswerverifiedShow Answer

Standard costs are agreed-upon costs used to measure other costs.

Correct AnswerverifiedShow Answer

Cost control is a process by means of which managers attempt to reduce costs to the absolute minimum.

Correct AnswerverifiedShow Answer

The four-step control process discussed in the chapter is applicable to any enterprise in which control must be instituted.

Correct AnswerverifiedShow Answer

The people whose actions must be controlled in food and beverage operations are employees, customers, and intruders.

Correct AnswerverifiedShow Answer

In the final analysis, ultimate responsibility for control rests with the individual employee.

Correct AnswerverifiedShow Answer

The second step in the control process is:

Correct AnswerverifiedShow Answer

The manager of a nearby restaurant has established procedure for servers to follow when placing food on a diner's table. This is an example of a:

Correct AnswerverifiedShow Answer

Taking corrective action when necessary is the second step in the control process.

Correct AnswerverifiedShow Answer

The third step in the control process is:

Correct AnswerverifiedShow Answer

Standards and standard procedures for preparing any given menu item are typically the same from one restaurant to another.

Correct AnswerverifiedShow Answer

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