Manage First Controlling Foodservice Costs Final
Exam Review Questions and Answers 2026
(GUARANTEED PASS)
How do managers measure the overall average food cost percentage
when the menu includes some items that sell at lower or higher food cost
percentages? - VERIFIED ANSWER - -They measure by looking carefully at
the menu product mix. The menu product mix is a detailed analysis that
shows the quantities sold of each menu item, along with their selling
prices and standard portion costs.
-A sample menu mix percentage (MM%) might look like this:
# of pork chops sold / total entrees sold = menu mix %
-The menu product mix is used to determine the composite (potential)
food cost percentage
What is accounts payable? - VERIFIED ANSWER - -Accounts payable
represents the amount of money that an operation owes suppliers from
which it has purchased goods, products, or services
-The first step of the accounts payable process begins when an invoice is
brought to the manager's office.
,-Next, the manager needs to make sure that the invoice is addressed to
the correct organization.
-The manager needs to make sure that the invoice is signed by one of the
operation's employees, indicating that item amounts are correct and
contents are intact.
-If everything is correct, the manager should stamp the invoice
"Approved," which signifies that it should be paid. After the invoice is
approved it needs to be coded. That is, if an invoice contains flour and
vodka, the flour should be coded under food costs, and vodka should be
coded under the beverage costs category.
The manager should oversee accounts payable activities with these goals
in mind: - VERIFIED ANSWER - • Pay invoices on a predetermined schedule
established by the business, not the vendors.
• Make sure all invoices that are paid are accurate and authentic.
• Minimize the amount of time and expense in processing accounts
payable paperwork.
AP Cost - VERIFIED ANSWER - -Meaning "as purchased cost"
-The as purchased (AP) method is used to cost an ingredient at the
purchase price prior to any trim or waste being taken into account.
,-In the AP method, all ingredient quantities are listed on the standardized
recipe in the form in which they are purchased.
-"Ten pounds of onion, diced" is an example of AP, as the recipe is calling
for 10 pounds of onion, as purchased. In this case, the chef would start
with 10 pounds of whole onion, peel and dice it, and add the onion to the
recipe. The manager would calculate the cost of 10 pounds of onion using
the AP method.
EP Cost - VERIFIED ANSWER - -Meaning "edible portion cost"
-The edible portion (EP) method is used to cost an ingredient after it has
been trimmed and waste has been removed so that only the usable
portion of the item is reflected.
-Many fruit, vegetable, meat, poultry, and seafood items lose volume and
weight when cooked. This may be referred to as shrinkage, which is
simply the amount of loss incurred when a product is trimmed and
cooked.
-When breaking down a whole snapper, for instance, weigh the whole fish
and calculate the price paid for it whole (the AP cost). Then, after
cleaning, weigh the two fillets. The EP cost of the two fillets is the price
paid for the whole fish, divided by the final weight of the cleaned and
trimmed fillets. Managers can then use the EP cost when calculating menu
pricing and food cost per serving.
-Original price / trimmed down weight = cost per serving
, Shrinkage - VERIFIED ANSWER - The amount of loss incurred when a
product is trimmed and cooked
Why is it important to know if you're using the AP or EP method? -
VERIFIED ANSWER - If the AP method is used to determine costs, but the
recipe is actually written following the EP method, the selling price will be
incorrect and the operation will lose money. The same will be true if the
recipe is written using the AP method and the manager uses the EP
method to determine the ingredient costs.
How do you convert AP quantities into EP quantities? - VERIFIED ANSWER -
-A butcher's yield test is used to measure the amount of shrinkage that
occurs during the trimming of a meat product. This trimming includes
deboning and removing fat and gristle
-A cooking loss test is a way to measure the amount of product shrinkage
during the cooking or roasting process.
-A yield test is used to measure the amount of shrinkage that occurs
during trimming and cutting products that are not cooked, such as
produce. *The amount of shrinkage due to trimming and cutting is usually
expressed in terms of a percentage.
Exam Review Questions and Answers 2026
(GUARANTEED PASS)
How do managers measure the overall average food cost percentage
when the menu includes some items that sell at lower or higher food cost
percentages? - VERIFIED ANSWER - -They measure by looking carefully at
the menu product mix. The menu product mix is a detailed analysis that
shows the quantities sold of each menu item, along with their selling
prices and standard portion costs.
-A sample menu mix percentage (MM%) might look like this:
# of pork chops sold / total entrees sold = menu mix %
-The menu product mix is used to determine the composite (potential)
food cost percentage
What is accounts payable? - VERIFIED ANSWER - -Accounts payable
represents the amount of money that an operation owes suppliers from
which it has purchased goods, products, or services
-The first step of the accounts payable process begins when an invoice is
brought to the manager's office.
,-Next, the manager needs to make sure that the invoice is addressed to
the correct organization.
-The manager needs to make sure that the invoice is signed by one of the
operation's employees, indicating that item amounts are correct and
contents are intact.
-If everything is correct, the manager should stamp the invoice
"Approved," which signifies that it should be paid. After the invoice is
approved it needs to be coded. That is, if an invoice contains flour and
vodka, the flour should be coded under food costs, and vodka should be
coded under the beverage costs category.
The manager should oversee accounts payable activities with these goals
in mind: - VERIFIED ANSWER - • Pay invoices on a predetermined schedule
established by the business, not the vendors.
• Make sure all invoices that are paid are accurate and authentic.
• Minimize the amount of time and expense in processing accounts
payable paperwork.
AP Cost - VERIFIED ANSWER - -Meaning "as purchased cost"
-The as purchased (AP) method is used to cost an ingredient at the
purchase price prior to any trim or waste being taken into account.
,-In the AP method, all ingredient quantities are listed on the standardized
recipe in the form in which they are purchased.
-"Ten pounds of onion, diced" is an example of AP, as the recipe is calling
for 10 pounds of onion, as purchased. In this case, the chef would start
with 10 pounds of whole onion, peel and dice it, and add the onion to the
recipe. The manager would calculate the cost of 10 pounds of onion using
the AP method.
EP Cost - VERIFIED ANSWER - -Meaning "edible portion cost"
-The edible portion (EP) method is used to cost an ingredient after it has
been trimmed and waste has been removed so that only the usable
portion of the item is reflected.
-Many fruit, vegetable, meat, poultry, and seafood items lose volume and
weight when cooked. This may be referred to as shrinkage, which is
simply the amount of loss incurred when a product is trimmed and
cooked.
-When breaking down a whole snapper, for instance, weigh the whole fish
and calculate the price paid for it whole (the AP cost). Then, after
cleaning, weigh the two fillets. The EP cost of the two fillets is the price
paid for the whole fish, divided by the final weight of the cleaned and
trimmed fillets. Managers can then use the EP cost when calculating menu
pricing and food cost per serving.
-Original price / trimmed down weight = cost per serving
, Shrinkage - VERIFIED ANSWER - The amount of loss incurred when a
product is trimmed and cooked
Why is it important to know if you're using the AP or EP method? -
VERIFIED ANSWER - If the AP method is used to determine costs, but the
recipe is actually written following the EP method, the selling price will be
incorrect and the operation will lose money. The same will be true if the
recipe is written using the AP method and the manager uses the EP
method to determine the ingredient costs.
How do you convert AP quantities into EP quantities? - VERIFIED ANSWER -
-A butcher's yield test is used to measure the amount of shrinkage that
occurs during the trimming of a meat product. This trimming includes
deboning and removing fat and gristle
-A cooking loss test is a way to measure the amount of product shrinkage
during the cooking or roasting process.
-A yield test is used to measure the amount of shrinkage that occurs
during trimming and cutting products that are not cooked, such as
produce. *The amount of shrinkage due to trimming and cutting is usually
expressed in terms of a percentage.
