1. Describe how a requisition and issuing system works.

2. Calculate a businesss inventory turnover rate if the opening inventory is valued at 86,400 and the closing inventory is valued at 67,200 for the month. There are 297,600 in purchases for the month. Assume that the restaurant has no adjustments to the cost of food sold from employee meals, promotions, etc.

3. A cost control manager notices that the quantities of spoiled food in storage have increased in the past three months. What might be the cause of the increase? (There are many possibilities, so suggest at least five.) If the purveyor changed three months ago but all other systems are exactly as they have been for years, what adjustments should the manager make to bring spoilage rates back in line?

4. As a manager/owner, you have found a great source for employees by hiring recovering alcoholics who have gone through a culinary training program. Do you need to change your control procedures regarding alcohol? Why or why not?

5. A cost control manager has a theft problem from his storeroom. He is frustrated because he uses a requisition and issuing system, keeps expensive products under lock and key, only supplies two managers with those keys, and even has security cameras. What steps might such a manager take to discover the source of the problem?

6. A restaurant purchases chicken breast four times each week and conducts an inventory weekly. The most recent weeks deliveries have been:

Monday40 kg chicken at 230/kg

Wednesday25kg chicken at 220/kg

Friday20kg chicken at 235/kg

Saturday45kg chicken at 240/kg

Calculate the possible values for 30 kg of chicken left in inventory on Sunday afternoon using the FIFO, LIFO, weighted average, and most recent price methods. Assuming the restaurant rotates stock properly, provide the value using the actual price method as well.