Foods 2 - Obj 12.03

FACS students practice making several products before choosing which one to sell. The result of that practice is called a/an:
1. Carrier.
2. Mock.
3. Profile.
4. Prototype.
A system for verifying and maintaining the desired standards in a product or service is called:
1. Automation.
2. Inspection.
3. Quality circle.
4. Quality control.
Which agency regulates safe and healthy working conditions?
1. CPSC
2. FDA
3. OSHA
4. UCC
What is the first step in creating a business plan?
1. Business description
2. General partners
3. Limited partners
4. Trade credit
What document predicts the success of a business?
1. Mission Statement
2. Business plan
3. Marketing plan
4. Safety policy
What kind of plan is presented to potential lenders or investors to gain financial support?
1. Business
2. Financial
3. Management
4. Marketing
How do general expenses affect the cost of a product?
1. Adds to production costs
2. Does not affect the cost
3. Is not considered in the cost
4. Keeps production costs down
What is net income to a business?
1. Costs
2. Inventory
3. Loss
4. Profit
How is gross profit for a business determined?
1. Beginning inventory minus ending inventory
2. Cost of goods sold from net profit
3. Cost of goods sold from revenue
4. Cost of goods sold plus expenses minus revenue
A bakery sells a birthday cake for $15.00. The sales tax is 6.5%. What is the total purchase price of the birthday cake?
1. $15.06
2. $15.65
3. $15.98
4. $16.98
What is the purpose of inventory management?
1. Buy cheaper products
2. Maintain inventory levels
3. Obtain reliable inventory
4. Uphold product quality
What does an income statement show the business owner?
1. Amount of profit or loss
2. Break-even point
3. Stock turnover rate
4. Total production costs
What must the company know in advance to predict when it will begin making a profit?
1. Break-even point
2. Credit card sales
3. Net profit income
4. Turnover rate
What should be considered when choosing vendors?
1. Industry averages
2. Reliability
3. Storage costs
4. Visual inventory
What is TRUE about goods produced by in-house entrepreneurships?
1. Marketed through nationwide publicity
2. Marketed through statewide publicity
3. Sold on location where produced
4. Sold to the community at large
Which promotes the value of the product or service to the customer?
1. Benefit
2. Feature
3. Opportunity
4. Resource
A complete picture of a business’s prospective customers is a:
1. Customer needs analysis.
2. Customer profile.
3. Marketing plan.
4. Resource list.
The sales budget is developed from the:
1. Business plan.
2. Marketing plan.
3. Sales forecast.
4. Sales promotions.
What might be an ADVANTAGE of purchasing goods from only one vendor?
1. Easier inventory management
2. Eliminate purchasing mistakes
3. Quantity discounts
4. Visits by sales representative
What might be a DISADVANTAGE of purchasing foods from only one vendor?
1. Billing often confusing
2. Costs increase without notice
3. Difficult to find alternate source
4. Often will send excess inventory
What might be a BENEFIT of using a local vendor to purchase goods?
1. Appropriate quantities
2. Better service
3. Higher quality
4. Trade discounts
Who should the purchasing manager contact if there is something wrong with a shipment or an invoice?
1. Customer
2. Manufacturer
3. Retailer
4. Vendor
What can happen if inventory management is poorly planned?
1. Easier record keeping
2. Fewer employees required
3. Increased inventory costs
4. Lower business costs
What expenses will stay constant with the number of items produced?
1. Break even point
2. Fixed costs
3. Liabilities
4. Variable costs
Who are the people to whom a business plans to sell its products?
1. Administrators
2. Consumers
3. Sales staff
4. Target customers
When operating a school-based business, the target customers are USUALLY:
1. Administration and faculty.
2. Cafeteria and custodial staff.
3. Faculty and students.
4. Members of the school community.
When making sales projections based on a NEW product or service:
1. Always estimate high to be prepared for demand.
2. Always estimate low to control inventory.
3. There are many pricing variables.
4. There is no data to refer to.
What is the amount added to the cost of an item to cover expenses and ensure profits?
1. Markup
2. Prestige pricing
3. Price skimming
4. Profit
Using a 100% markup and taking off one cent to give the impression of bargain prices, what is the RETAIL price of an item whose wholesale cost is $20.00?
1. $40.00
2. $39.99
3. $30.00
4. $29.99
What formula expresses markup?
1. Cost – markup = price
2. Cost – price = markup
3. Cost + price = markup
4. Cost + markup = price
If an item costs $5 to produce and the markup is 50%, what is the selling price?
1. $6.00
2. $7.50
3. $9.00
4. $10.00
If a $10 item is marked up 100%, what is the selling price?
1. $12.00
2. $15.00
3. $20.00
4. $25.00
What is NOT used to construct a cash flow statement?
1. Expenses
2. Inventory
3. Net income (or loss)
4. Revenues
The cash flow statement describes the flow of cash:
1. Between wholesale and retail price.
2. From outside the business.
3. Into and out of a business.
4. Within a business.
What financial statement tells an entrepreneur what his/her business is worth at a given time?
1. Balance sheet
2. Cash flow statement
3. Ledger
4. Profit and loss statement
Which type of inventory system would a small produce store use for a quick inspection?
1. Just-in-time
2. Partial
3. Perpetual
4. Visual
Most businesses use what customer complaint slogan?
1. “No receipt – No refund”
2. “Sorry, it is not my department.”
3. “The customer is always right.”
4. “The customer is never to be trusted.”
What is the covering, wrapper, or container in which merchandise is placed for retail sale?
1. Boxing
2. Labeling
3. Packaging
4. Wrapping
What step BEST describes the development of a marketing strategy?
1. Marketing mix
2. Pricing
3. Purchased product
4. Sharing ideas
What are marketing objectives?
1. Goals
2. Products
3. Sales
4. Strategies
Target customers must be chosen with care when beginning a new business because they are the customers:
1. Asked to purchase a specific product or service.
2. Most likely to buy a specific product or service.
3. That plan to buy a specific product or service.
4. That are willing to take a risk on buying from a new business.
A business plan can provide an entrepreneur with a start up:
1. Blueprint.
2. License.
3. Operation.
4. Profit.

Foods 2 - Obj 12.03

Quiz