QUESTION 1

In using standard cost control, a change in the sales revenue mix may cause:

		Actual cost to be above standard cost even though it was previously lower
		Actual cost to be below standard cost even though it was previously higher
		Both the standard and the actual cost to decrease from the previous period
		All of the above answers are correct

QUESTION 2

Comparative horizontal balance sheets show the:

		Change in individual account balances in dollars from one period to the next.
		Change in individual account balances in percentage terms from one period to the next.
		Change in individual account balances in both dollar and percentage terms from one period to the next.
		Various assets, liability, and owners' equity account balances as a percentage of total sales revenue.

QUESTION 3

Average check is calculated by dividing:

		Sales revenue for a period by the number of guests served during that period
		Sales revenue for a period into the number of guests during that period
		Annual sales revenue by 365
		Sales revenue for a period by the number of guests served during that period and multiplying by 100

2.5 points

QUESTION 4

departmental sales revenue mix refers to the:

		deduction of indirect expenses from a department's sales revenue to arrive at contributory income
		ratio of indirect expenses allocated to departments based on the basis of sales revenue
		ratio of sales revenue of various departments to total company sales revenue
		ratio of direct expenses allocated to departments based on sales revenue

QUESTION 5

On a balance sheet, an accrued payable is classified as a:

		Current asset
		Non-current, fixed asset
		Current liability
		Long-term liability

QUESTION 6

A prepaid account is classified on the Balance Sheet as:

		A current liability
		Sales revenue
		A contra account
		A current asset

2.5 points

QUESTION 7

No adjusting entry was made to recongize interest expense of $1,200 at the end of an operating period. The failure to make this adjusting entry will cause:

		Net income to be understated by $1,200
		The second and third answers are both correct
		Net income to be overstated by $1,200
		The first and third answers are both correct
		Liabilities to be understated

2.5 points

QUESTION 8

Common-size vertical Balance Sheets:

		Show the change in each income statement account from the Period 1 to Period 2 in percentage terms
		Express total assets as 100% and show all other assets as a percentage of that
		Show equity as 100% and express all other items as a percentage of that
		Show net income as 100% and express all other items as a percentage of that

QUESTION 9

A petty cash fund has been established by a restaurant with a limit of $200. The office assistant is in charge of the fund. During the month of June the fund made the following cash disbursements:

Date	Amount	Purpose
June 1	$33.00	For postage stamps
June 7	4.50	For a COD package
June 11	18.50	For office supplies
June 21	12.35	for cleaning supplies
June 28	59.00	for casual labor

Cash remaining in the fund: $72.65

Calculate the amount of the reimbursement check for June

		$127.35
		$117.65
		$200.00
		$172.65

2.5 points

QUESTION 10

Assume an operating department of a restaurant, reported sales revenue of $38,000 in a given month in which its direct costs were $17,100. Its contributory income and contributory income as a percentage of sales revenue would be:

		$20,900 and 55%
		20,900 and 45%
		20,900 and 50%
		20,900 and 40%

2.5 points

QUESTION 11

Normally petty cash funds are not spot-checked since the replenishment process checks the viability of the fund on a monthly basis.

True

False

2.5 points

QUESTION 12

a) If the cost of menu item 1 is $4.75 and the selling price is $12.50, what is the cost percentage?

b) If the cost percentage of menu item 3 is 42% and the selling price is $15.00, what is the cost?

		a) The cost % is 42.0% b) The cost is $4.75
		a) The cost % is 33.0% b) The cost is $3.50
		a) The cost % is 38.0% b) The cost is $6.30
		a) The cost % is 25% b) The cost is $5.30

2.5 points

QUESTION 13

Contributory incomes are:

		departmental incomes before deduction of indirect expenses
		the same as gross margin
		sales revenues less indirect expenses
		income before income tax

2.5 points

QUESTION 14

Beginning food inventory for the Dinewell Restaurant Company was $4,200, food inventory purchases for the period were $17,200, and ending inventory for the period was $3,800. Dinewell Restaurant Company did not transfer in or out costs to the bar, and promotional meals and employee meals are not included in the cost of sales calculation. 1) What was the dollar amount for the total food available for sale for this period? 2) What was the total cost of food sold for this period?

		1) Cost of Food Available = $21,800 2) Cost of Food Sold = $17,200
		1) Cost of Food Available = $17,200 2) Cost of Food Sold = $17,600
		1) Cost of Food Available = $21,400 2) Cost of Food Sold = $ 17,600
		1) Cost of Food Available = $17,600 2) Cost of Food Sold = $17,200

2.5 points

QUESTION 15

If a restaurant reported monthly sales revenue of $47,250, cost of sales $18,900, and 4,200 guests were served, what is the cost of sales per guest and the total cost of sales as a percentage of sales revenue?

		$4.50 and 40%
		$4.75 and 40%
		$5.00 and 42%
		$5.50 and 42%

QUESTION 16

A restaurant that takes no end of period inventories, but simply records all purchases of food and beverage inventories as an expense at the time of purchasing is violating:

		The cost principle
		The full disclosure principle
		The materiality principle
		The matching principle

2.5 points

QUESTION 17

An operation with food and beverage divisions average monthly indirect costs of $12,400. The food division uses 3,360 square feet and the beverage division uses 840 square feet. Indirect costs of $12,400 are to be allocated to each operation on a square foot basis. Allocate the indirect costs to the two divisions. Round your answer to the nearest dollar.

		Indirect costs allocated to food division = $9,034 Indirect costs allocated to beverage division = $3,366
		Indirect costs allocated to food division = $9,448 Indirect costs allocated to beverage division = $2,953
		Indirect costs allocated to food division = $9,920 Indirect costs allocated to beverage division = $2,480
		Indirect costs allocated to food division = $8,857 Indirect costs allocated to beverage division = $3,543

2.5 points

QUESTION 18

If the supplies account had an unadjusted trial balance of $1,800 and a physical count at the end of the accounting period indicated that $400 of supplies were on hand, the value of the supplies used were during the accouting period were:

		$2,200
		$1,400
		$400
		None of the above answers are correct

2.5 points

QUESTION 19

An operation has a food and beverage division. The food division uses 3,520 square feet and the beverage division uses 880 square feet. Indirect costs of $14,800 are to be allocated to each operation on a square foot basis. Allocate indirect costs to the two divisions.

		Food: $11,440 Beverage: $3,360
		Food: $11,840 Beverage: $2,960
		Food: $12,170 Beverage: $2,630

2.5 points

QUESTION 20

Cost of food used for a food operation is $8,480. A total of $120 was transferred in from the bar, cost of employee meals was $180, and promotional meals cost $48. Calculate the cost of food sales.

		$8,372
		$8,132
		$8,588
		$8,828