Below are statements regarding the rudimentary cause for differences in restaurant food cost and banquet food cost Which of the following statements is true 1) Cooking for banquets creates many economies of scale resulting from a predictable, often large, amount of people eating the same food 2)Many hotels that have both a restaurant and banquet space share similar items on their menus thus, excess banquet product (prepared and unprepared) can be used in the restaurant 3)Both statements are true Which is not a possible cause for the fixed portion of the food cost 1)Employee hours for the hotel do not vary greatly from month to month and employee meals are not properly allocated to a separate expense line 2)Several restaurant ingredients are highly perishable and normally go bad before all the product is used 3)Many prep items are being over produced during slow times resulting in waste 4)All the statements above are possible causes for the fixed portion of the food cost Which would be the best opening paragraph to Scott summarizing your findings 1) Dear Scott, I received your concerned email regarding our monthly fluctuations in food cost In short, the large changes in food cost as a percentage of food sales are primarily a result of the varying volume of banquet sales from month to month Due to their inherent differences as I will discuss in greater detail later, restaurant food sales and banquet food sales have very different cost structures Food cost for banquet sales is much higher in general than food cost for restaurant sales Thus in months when banquet food sales far exceeded restaurant food sales, food cost was high Conversely, in months where banquet sales were low and restaurant sales were relatively constant, food cost was low 2) Dear Scott, I received your concerned email regarding our monthly fluctuations in food cost In short, the large changes in food cost as a percentage of food sales are primarily a result of the fixed costs that are inherent to our department Due to many operational inefficiencies, allocation errors and inventory measurement errors which I will discuss in greater detail later, food cost is fluctuating greatly from month to month This is further augmented by the fact that our total food sales vary greatly from month to month 3) Dear Scott, I received your concerned email regarding our monthly fluctuations in food cost In short, the large changes in food cost as a percentage of food sales are primarily a result of the varying volume of banquet sales from month to month Due to their inherent differences as I will discuss in greater detail later, restaurant food sales and banquet food sales have very different cost structures Food cost for banquet sales is much lower in general than food cost for restaurant sales Thus in months when banquet food sales far exceeded restaurant food sales, food cost was low Conversely, in months where banquet sales were low and restaurant sales were relatively constant, food cost was high 4) Dear Scott, I received your concerned email regarding our monthly fluctuations in food cost In short, I'm not sure what the exact cause of the fluctuations in food cost is I imagine that it is in part due to inventory measurement errors and invoice mis codings It is difficult to ascertain the exact cause, but I am determined to more tightly manage my department and ensure that we have more consistency in the future Below are some of the steps we are planning on taking to ensure this consistency

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 09, 2024

Below are statements regarding the rudimentary cause for differences in restaurant food cost and banquet food cost. Which of the following statements is true? 1)

Below are statements regarding the rudimentary cause for differences in restaurant food cost and banquet food cost. Which of the following statements is true?

Cooking for banquets creates many economies of scale resulting from a predictable, often large, amount of people eating the same food.

2)Many hotels that have both a restaurant and banquet space share similar items on their menus; thus, excess banquet product (prepared and unprepared) can be used in the restaurant.

3)Both statements are true.

Which is not a possible cause for the fixed portion of the food cost?

1)Employee hours for the hotel do not vary greatly from month to month and employee meals are not properly allocated to a separate expense line.

2)Several restaurant ingredients are highly perishable and normally go bad before all the product is used.

3)Many prep items are being over produced during slow times resulting in waste.

4)All the statements above are possible causes for the fixed portion of the food cost.

Which would be the best opening paragraph to Scott summarizing your findings?

Dear Scott,

I received your concerned email regarding our monthly fluctuations in food cost. In short, the large changes in food cost as a percentage of food sales are primarily a result of the varying volume of banquet sales from month to month. Due to their inherent differences as I will discuss in greater detail later, restaurant food sales and banquet food sales have very different cost structures. Food cost for banquet sales is much higher in general than food cost for restaurant sales. Thus in months when banquet food sales far exceeded restaurant food sales, food cost was high. Conversely, in months where banquet sales were low and restaurant sales were relatively constant, food cost was low.

Dear Scott,

I received your concerned email regarding our monthly fluctuations in food cost. In short, the large changes in food cost as a percentage of food sales are primarily a result of the fixed costs that are inherent to our department. Due to many operational inefficiencies, allocation errors and inventory measurement errors which I will discuss in greater detail later, food cost is fluctuating greatly from month to month. This is further augmented by the fact that our total food sales vary greatly from month to month.

Dear Scott,

I received your concerned email regarding our monthly fluctuations in food cost. In short, the large changes in food cost as a percentage of food sales are primarily a result of the varying volume of banquet sales from month to month. Due to their inherent differences as I will discuss in greater detail later, restaurant food sales and banquet food sales have very different cost structures. Food cost for banquet sales is much lower in general than food cost for restaurant sales. Thus in months when banquet food sales far exceeded restaurant food sales, food cost was low. Conversely, in months where banquet sales were low and restaurant sales were relatively constant, food cost was high.

Dear Scott,

I received your concerned email regarding our monthly fluctuations in food cost. In short, I'm not sure what the exact cause of the fluctuations in food cost is. I imagine that it is in part due to inventory measurement errors and invoice mis-codings. It is difficult to ascertain the exact cause, but I am determined to more tightly manage my department and ensure that we have more consistency in the future. Below are some of the steps we are planning on taking to ensure this consistency: