Fundamentals Of Business: Purchasing Quiz

When purchasing products and services for a food service operation, the responsible individual needs to consider various factors. They need to think about the desired quality and cost of the final product to ensure that it meets the standards and fits within the budget. They also need to take into account the skill level of the employees as certain products may require specific expertise to handle. Additionally, they should consider the storage space and equipment required to store and prepare the products. Lastly, they need to consider the labor cost, selling price, and average check to ensure profitability. Therefore, all of the above factors need to be considered when purchasing products and services for a food service operation.

In the context of the purchasing function, the term "quality" refers to the suitability of a product or service for its intended use. This means that the item or service should meet the specific requirements and standards set by the purchaser. It is important for the purchased item to be fit for its intended purpose, ensuring that it will perform effectively and efficiently.

(standard food cost) + (labour cost) = (total expenses)
35% + 28.2% = 63.2%

So to calculate the total expenses ($)
$12.50 * 0.632 = $7.90

To calculate the profit find the difference of selling price and expenses
$12.50 - $7.90 = $4.60

The purchasing agent is generally responsible for completing an issue requisition when items are needed in food production areas. This role involves ensuring that the necessary ingredients and supplies are procured in a timely manner to support the food production process. The purchasing agent interacts with suppliers, negotiates prices, and ensures that the items meet quality standards. They work closely with the chef and other staff members to understand their requirements and ensure that the necessary items are available for production.

Product specifications should include the name of the item so that customers can easily identify it. The intended use is important to ensure that customers understand how to properly use the product. Quality characteristics help customers assess the product's performance and reliability. Allowable substitutions provide information on alternative options that customers can consider. The form of the product, such as its physical appearance or packaging, is necessary for customers to know what to expect. Lastly, the unit size is important for customers to understand the quantity or volume of the product they are purchasing.

If 15% of the restaurant`s monthly revenue is $600 then
$600 / 15% * 100% = $4000 / month
Therefore, the total additional revenue that must be generated in a year would be
$4000 * 12 months = $48,000 / year

A MOBA stands for Make or Buy Analysis. It is a tool used to determine whether a company should produce a particular product or service in-house or purchase it from an external supplier. This analysis involves evaluating the costs, risks, and benefits associated with both options. By conducting a MOBA, businesses can make informed decisions about whether to make a product internally or outsource it, considering factors such as cost-effectiveness, quality control, and resource allocation.

The correct answer is "The Right Product, The Right Quantity, The Right Supplier, The Right Price, The Right Time." This answer accurately identifies the five key factors that need to be considered when making a purchasing decision. The right product refers to selecting the appropriate item that meets the needs and requirements of the purchaser. The right quantity ensures that the desired quantity of the product is obtained. The right supplier ensures that a reliable and trustworthy supplier is chosen. The right price refers to getting the product at a fair and reasonable price. The right time emphasizes the importance of timely delivery or availability of the product.

The correct answer is to decide the menu concept, create an inventory list or file, and develop product specifications. This sequence of steps ensures that the buyer first determines the concept for the menu, then creates a list of the inventory needed for that menu, and finally develops specifications for the products to be purchased. This approach helps in efficiently planning and organizing the purchasing process, ensuring that the right quality of products is procured for the menu concept.

Convenience foods can reduce labor cost and overall portion cost because they require less preparation time and can be easily portioned, reducing the need for additional labor and minimizing waste. Additionally, convenience foods can reduce receiving, storage, and inventory costs as they often have longer shelf lives and require less storage space compared to fresh ingredients. This can help restaurants save money on inventory management and reduce the risk of food spoilage.