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CHAPTER 2

THE CONTROL PROCESS

True/False Questions

1. The people whose actions must be controlled in food and beverage operations are employees,
customers, and intruders.

2. The four-step control process discussed in the chapter is applicable to any enterprise in which
control must be instituted.

3. Taking corrective action when necessary is the second step in the control process.

4. Standards and standard procedures for preparing any given menu item are typically the same from
one restaurant to another.

5. Standard costs are agreed-upon costs used to measure other costs.

6. Training all employees to follow established standards and standard procedures is the first step in
the control process.

7. Developing appropriate standards and standard procedures for an operation establishes effective
control.

8. A budget is a forecast of sales activity and an estimate of the costs that will be incurred in the
process of generating those sales.

9. Two principal causes of excessive costs are inefficiency and waste.

10. Portion size is one example of a common quality standard.

11. Cost control is a process by means of which managers attempt to reduce costs to the absolute
minimum.

12. A control system is the sum of all control techniques in use in a given establishment, as well as the
means by which they are implemented.

13. The grading standards for foods established by the Department of Agriculture are good examples
of quality standards.

14. In the final analysis, ultimate responsibility for control rests with the individual employee.

15. Standard procedures are those that have been established by management as the correct methods
for producing products and accomplishing tasks.
Multiple Choice Questions

1. The following are control devices:

a. the bartender's guide to mixed drinks.
b. time clocks and locks.
c. both (a.) and (b.) are correct.

2. The second step in the control process is:

a. taking corrective action.
b. training employees
c. monitoring employees' performance

3. The manager of a nearby restaurant has established procedure for servers to follow when placing
food on a diner's table. This is an example of a:
a. quality standard.
b. quantity standard.
c. neither (a.) nor (b.) is correct.

4. Requiring records and reports is a:

a. quantity standard.
b. quality standard.
c. neither (a.) nor (b.) is correct.

5. The third step in the control process is:

a. training employees.
b. taking corrective action.
c. neither (a.) nor (b.) is correct.

6. Quantity standards are:

a. measures of weight, count, or volume.
b. rules for making comparisons and judgements.
c. used for making judgements about the degree of excellence of raw materials and finished
products.

7. If the standard cost of a one-ounce drink is $.50 and the actual cost of the drink is $.55, the
excessive cost in 10 such drinks is:
a. $.05.
b. $.50.
c. neither (a.) nor (b.) is correct.

8. The relationship between the cost incurred in instituting and maintaining a control and the benefit
generated by that is:
a. a credit.
b. cost control.
c. cost/benefit ratio.

9. The owner of the Slippery Slope Bar buys Finsby's gin in 750 ml bottles -- the equivalent of 25.4
ounces -- at $8.50 per bottle. Allowing .4 ounces for spillage, the standard cost of a 1.5-ounce drink
is:
a. $.169
b. $.34
c. $.51
10. A financial plan prepared for more than one level of business activity is known as a:
a. flexible budget
b. budget
c. static budget