• The exams in this course are part multiple-choice (affectionately known as multiple-guess) and part calculation.
• Any exceptions to the above are noted below.
• You must bring a calculator to the exam -- cell phones may not be used as a calculator.
• When studying for the exam:
  • Exam questions will come from the textbook, class notes, and class discussions.
  • The questions are designed to assess your ability to apply concepts as well as the concepts themselves. This means that the exam will test your knowledge as well as you ability to apply the knowledge.

• Chapters 4, 5, and 6 in the textbook
• Class notes for chapters 4, 5, and 6
• Study Questions -- The following questions will help you study for the exam. You will need to know more than just these questions, these are just some hints:

1. Know the entire budget process to include top-down and bottom-up budgeting, budget reforcasting and the three steps of budget development
2. What are considered fixed costs and variable costs.
3. For calculating projected expense levels, know the simple mark-up method and percentage method.
4. Know how to calculate projected revenues, profits, and losses.
5. Know how to calculate a breakeven point given specific information (cost/volume profit analysis).
6. Know how to calculate a selling price based on a profit goal.

Chapter 5

1. Know the areas of a food service operation that are directly affected by the menu.
2. Know the menu planning process and pay specific attention to the external and internal factors.
3. Calculate a menu selling price using the ingredients mark-up method, contribution to margin method, ratio pricing method, and prime-cost pricing method.
4. Identify the other concerns involved with pricing a menu.
5. Know the menu engineering concept to include how to improve the menu once you have identified stars, plowhorses, puzzles and dogs.
6. Know how to calculate how much additional revenue would be needed to maintain a specific profit margin given a specified amount of waste.
7. How deos menu planning in a multi-unit organization differ from that in an individually owned and operated restaurant?
8. How can computer technology assist in the menu planning function.

Chapter 6

1. Know which postion in a food service operation is responsible for each phase of the purchasing, requisitioning and receiving functions.
2. Define the following terms: quality, stockout, order point, audit trail, maximum/minimum inventory levels, lead time, usage rate, prime supplier, standard purchase specifications.
3. What factors should be considered when selecting suppliers?
4. What are some of the ways in which theft can occur at the time of purchase and receiving?
5. What are the steps in the receiving process?
6. Be able to calculate usage rates; and purchase amounts given usage rate, lead times and safety levels.

Bring a calculator to the exam -- Cell phones will not be permitted as calculators.