Chapter 4

Managing Inventory and Production

Multiple Choice Exam Questions

1. In the management of inventory, what does the acronym FIFO stand for?
2. Fast in, fast out
3. First in, first out
4. Fresh in, fresh out
5. Freeze in, freeze out
6. Which product would be best stored and served utilizing the LIFO system of inventory management?
7. Milk
8. Donuts
9. Canned peas
10. Dried parsley
11. Dry-storage areas in a foodservice operation should be maintained at a temperature ranging between
12. 25 ^ºF and 35 ^ºF (-4 ^ºC and 2 ^ºC).
13. 45 ^ºF and 55 ^ºF (7 ^ºC and 13 ^ºC).
14. 65 ^ºF and 75 ^ºF (18 ^ºC and 24 ^ºC).
15. 85 ^ºF and 95 ^ºF (29 ^ºC and 35 ^ºC).
16. Refrigerators used to store potentially hazardous foods (PHFs) should be maintained at a temperature of
17. 30 ^ºF (-0.4 ^ºC) or less.
18. 31 ^ºF (-0.5 ^ºC) or above.
19. 41 ^ºF (5 ^ºC) or less.
20. 42 ^ºF (6 ^ºC) or above.
21. To allow for proper cleaning and to ensure proper ventilation, what is the minimum number of inches shelving should be placed above the ground?
22. 4
23. 6
24. 8
25. 10
26. Potentially hazardous foods are those which must be carefully handled for time and
27. cost.
28. weight.
29. quantity.
30. temperature.
31. What is the formula used to calculate the item inventory value of products held in storage?
32. Par value ÷ Item Value = Item Inventory Value
33. Par value × Item Value = Item Inventory Value
34. Item Amount ÷ Item Value = Item Inventory Value
35. Item Amount × Item Value = Item Inventory Value
36. A manager has a total of 1.5 cases of canned green beans held in storage. The green beans cost $18.50 per case. What is the total inventory value of this manager’s canned green beans?
37. $12.33
38. $18.50
39. $27.75
40. $42.33
41. A beverage manager takes inventory and finds that, for a specific brand of gin, there are three full bottles and one bottle that is 4/10 full. The value of the gin is $25.50 per bottle. What will be the inventory value assigned to this brand of gin?
42. $66.70
43. $76.70
44. $86.70
45. $96.70
46. When foodservice workers conduct actual counts of the items held in their operations’ storage areas, they are taking
47. an ABC inventory.
48. a static inventory.
49. a physical inventory.
50. a perpetual inventory.
51. The issuing of a stored item should take place only after the item has first been properly
52. sold.
53. requisitioned.
54. pre-portioned.
55. made recipe-ready.
56. For what types of products is the “empty-for-full” replacement system most appropriate?
57. Keg beer
58. Box wines
59. Bottled spirits
60. Bottled wines
61. In which inventory system are additions to, and subtractions from, stored product amounts recorded as they occur?
62. ABC inventory
63. Static inventory
64. Physical inventory
65. Perpetual inventory
66. What is the inventory management system that utilizes bin cards?
67. ABC inventory
68. Static inventory
69. Physical inventory
70. Perpetual inventory
71. When utilizing the ABC inventory system, what is true about items in category C?
72. The number of items is small, and the total value of the items is small
73. The number of items is small, and the total value of the items is large
74. The number of items is large, and the total value of the items is small
75. The number of items is large, and the total value of the items is large
76. A manager offers sautéed trout fillets on the menu. If the manager utilizes the ABC inventory system, which item used to produce this menu item would most likely be considered an “A” category item?
77. Lemon slices
78. Fresh trout fillets
79. Fresh garlic cloves
80. Hungarian paprika
81. What formula do managers use to determine the order amount of the products they need to purchase?
82. Par Value - On Hand + Special Order = Order Amount
83. Par Value + On Hand + Special Order = Order Amount
84. Par Value - On Hand - Special Order = Order Amount
85. Par Value + On Hand - Special Order = Order Amount
86. A standardized recipe yields 55 servings and costs $68.75 to produce. What is the portion cost of this recipe?
87. $0.80
88. $1.05
89. $1.25
90. $1.45
91. When portioning a product using a # 12 scoop, how many portions can be served from 1 gallon of the product?
92. 12
93. 24
94. 36
95. 48
96. Which type of food service operation would likely produce the most number of carryovers each day?
97. Sub shop
98. Cafeteria
99. Pizza parlor
100. Quick service restaurant (QSR)
101. A manager forecasts that 80 servings of Sea Bass will be sold today. The operation has carried over 15 usable servings of sea bass from yesterday and the manager wishes to maintain a margin of error of 5 servings. What should be the number of Sea Bass portions produced today?
102. 50
103. 60
104. 70
105. 80
106. A baker’s bread formula calls for 10 pounds of flour and it produces 5 loaves. The formula calls for 15% sugar. The baker wants to make 15 loaves. How much sugar will the baker use to make 15 loaves?
107. 2.5 pounds
108. 3.5 pounds
109. 4.5 pounds
110. 5.5 pounds
111. What is the purpose of a jigger?
112. Reduction of labor costs
113. Measurement of alcohol
114. Simplification of product issuing
115. Maintenance of product temperatures
116. Which beverage production control system would require the greatest amount of financial investment on the part of a bar owner?
117. Beverage gun
118. Free-pour
119. Jigger pour
120. Metered pour spout
121. Dram shop laws shift the liability for acts committed by an individual under the influence of alcohol from that individual to the
122. maker of the alcohol.
123. person who purchased the alcohol.
124. state in which the alcohol was served.
125. the person or operation that served the alcohol.

True/False Exam Questions

1. Operations using a FIFO storage system rotate their stock so that products already on-hand are used prior to the use of more recently delivered products.
2. True
3. False
4. Pasteurized beer in either cans or bottles can be stored in a cool, dark room at 50 ^ºF to 70 ^ºF (10 ^ºC to 21 ^ºC) because it does not require refrigeration.
5. True
6. False
7. Safety stock is the amount of an inventory item managers anticipate using before purchasing that item again.
8. True
9. False
10. Liquor inventories are best taken with an operation is closed.
11. True
12. False
13. Requisitions are used to officially request the issuing of needed products from storage.
14. True
15. False
16. Portion cost is the amount of money required to produce one serving of a menu item.
17. True
18. False
19. Food scoops are sized based on the number of portions they will serve per gallon of product.
20. True
21. False
22. In most cases, convenience foods have a lower food cost per serving than products that are made on-site.
23. True
24. False
25. Lack of portability is a major disadvantage of using jiggers to help control beverage costs.
26. True
27. False
28. Dram shop laws address legal liability in the service of alcoholic beverages.
29. True
30. False