Chapter $13$

Directions: Answer each question completely.

$1.$ How do food service managers benefit from using the uniform system of accounts appropriate for their operation?

$2.$ How is the operations budget used as a control tool?

$3.$ Why is the income statement a measure of the effectiveness of food service managers?

$4.$ How are food costs calculated?

$5.$ What is the purpose of a balance sheet? What do the assets, liabilities, and equity sections of a balance sheet represent?

$6.$ What standards can be used to evaluate the ratios computed for a food service operation?

$7.$ Why would creditors of a food service operation prefer that the operation$$s balance sheet indicate relatively high current and solvency ratios?

$8.$ How do food service managers determine whether food and beverage costs are reasonable?

$9.$ What are some factors that could contribute to a high food cost percentage? A high beverage cost percentage?

$10.$ What five common operating ratios are of interest to food and beverage managers? How are they calculated? How do the managers use them?

$11.$ What types of software are available to help with accounting tasks?