Fundamentals Of Business: Purchasing Quiz

10 Questions | By Hmgt | Last updated: Mar 22, 2022 | Total Attempts: 1048

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1.

A restaurant wastes $600 each month because of poor purchasing practices. If the operations budget targets a profit of 15% of revenues, how much additional revenue must be generated by year’s end to recoup the $600 of wasted resources each month?
- A.
  
  $600 $600 $600 $600
- B.
  
  $4,000
- C.
  
  $48,000
- D.
  
  $52,000
2.

In relation to the purchasing function, the term quality refers to:
- A.
  
  Highest price
- B.
  
  Popularity of the menu item
- C.
  
  Greatest value
- D.
  
  Suitability for the intended use
3.

In relation to the food service purchasing cycle, which of the following positions is generally responsible for completing an issue requisition when items are needed in food production areas?
- A.
  
  Chef
- B.
  
  Purchasing Agent
- C.
  
  Receiving Agent
- D.
  
  Storeroom Clerk
4.

The “Five Rights” to Purchasing are:
- A.
  
  The Right Product, The Right Quality, The Right Quantity, The Right Supplier, The Right Time
- B.
  
  The Right Product, The Right Staff, The Right Quantity, The Right Price, The Right Time
- C.
  
  The Right Product, The Right Staff, The Right Quantity, The Right Price, The Right Time
- D.
  
  The Right Product, The Right Quantity, The Right Supplier, The Right Price, The Right Time
5.

The Steps to Buying the “Right Quality” are:
- A.
  
  Decide the menu concept, Create an inventory list or file, Develop product specifications
- B.
  
  Determine the menu concept, Determine budget, Determine methods of preparation
- C.
  
  Determine Guest Demographics, Develop menu concept, Determine budget
- D.
  
  Determine menu concept, Determine budget, Develop Product specifications
6.

Product Specifications should Include:
- A.
  
  The name of the item, Price, product characteristics, allowable substitutions, form
- B.
  
  The Name of the item, the name of the supplier, intended use, allowable substitutions, unit size
- C.
  
  The name of the item, intended use, quality characteristics, allowable substitutions, form, unit size
- D.
  
  None of the above
7.

Convenience foods: (maybe more than one answer)
- A.
  
  Can reduce labor cost and overall portion cost
- B.
  
  Are the best option for casual service restaurants
- C.
  
  Can reduce receiving, storage and inventory costs
8.

A MOBA Is:
- A.
  
  Manufacturers & Operators Business Association
- B.
  
  A tool used to determine the final portion cost including labour of menu items
- C.
  
  Make or Buy Analysis
- D.
  
  Managers Over-site & Buying Agreements
9.

Purchasing Products and services for a food service operation requires the responsible individual to take into consideration:
- A.
  
  The desired quality and cost of the final product
- B.
  
  The skill level of the employees
- C.
  
  Storage space and equipment required
- D.
  
  Labour cost, selling price, and average check
- E.
  
  All of the above
10.

Gerhard’s Burger Barn sells a premium Cheeseburger with all the fixings for $12.50. The standard Food Cost % for the item is 35% and the labor cost required to produce it is 28.2%. After food & labor costs are factored in how much money does Gerhard have leftover to pay the rest of the bills and hopefully make a profit?
- A.
  
  $6.18
- B.
  
  $4.60
- C.
  
  $4.43
- D.
  
  $7.90