1. What are the two basic requirements of an internal control system?

4. Explain what separation of record-keeping from control of assets means and why you would use it.

5. Explain how lapping works.

8. List and briefly discuss appropriate procedures for control over product storage and explain how perpetual inventory cards can be used in control.

9. Explain the difference between standard and actual food cost.

How is the actual food cost computed?

How is standard food cost computed?

10. If the actual food cost percentage is greater than the standard food cost, what might be the reasons for the difference?

11. Explain why the contribution margin of menu item is more relevant to profitability than the food cost percentage.