Chapter #16–about Controlling Payroll Costs & Employee Turnover

1.

Which of the following tools helps a Food & Beverage manager determine labour standards for each position and shift?

A.

Variance analysis
B.

Budgeted Labour Cost Percentage
C.

CRFA Staffing Averages
D.

Position performance analysis

Correct Answer
D. Position performance analysis

Explanation
Position performance analysis is a tool that helps a Food & Beverage manager determine labour standards for each position and shift. This analysis involves evaluating the performance of employees in different positions to identify their productivity levels and efficiency. By comparing the performance of different positions, the manager can determine the appropriate labour standards for each position and shift, ensuring that the right amount of staff is allocated to meet the demands of the business. This analysis helps in optimizing staffing levels, reducing labour costs, and improving overall operational efficiency in the Food & Beverage industry.

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2.

If the manager of a food &Beverage operation wanted to emphasize productivity, as opposed to labour costs, labour performance standards would best be expressed in terms of:

A.

Labour Dollars.
B.

Labour Hours
C.

Variable Labour
D.

Fixed Labour
E.

A Labour Matrix Analysis

Correct Answer
B. Labour Hours

Explanation
If the manager wants to emphasize productivity, it would be best to express labour performance standards in terms of labour hours. This means that the focus is on the amount of time employees spend working, rather than the cost of their labor or other factors. By measuring productivity in terms of hours worked, the manager can assess how efficiently the staff is utilizing their time and identify areas for improvement.

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3.

When constructing staffing guides, managers should:

A.

Use the productivity rates of good employees as a basis to set labour standards for average employees.
B.

Keep productivity rates at the levels initially established, despite increases in employee efficiency and proficiency.
C.

Rely strongly on standards developed in the industry for other similar operations.
D.

Incorporate all of the above points

Correct Answer
A. Use the productivity rates of good employees as a basis to set labour standards for average employees.

Explanation
When constructing staffing guides, managers should use the productivity rates of good employees as a basis to set labor standards for average employees. This means that the performance of top-performing employees should be used as a benchmark for setting expectations and standards for the average employees. By doing so, managers can ensure that the labor standards are realistic and achievable for the average employees, leading to better overall performance and productivity. This approach takes into account the capabilities and potential of the average employees while still aiming for high standards.

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4.

Which of the following staff positions are likely to have work schedules that vary in relation to changes in a restaurants volume of business?

A.

Compressed staff positions
B.

Variable staff positions
C.

Shared staff positions
D.

Fixed staff positions

Correct Answer
B. Variable staff positions

Explanation
Variable staff positions are likely to have work schedules that vary in relation to changes in a restaurant's volume of business. This means that the hours and shifts of these staff members can fluctuate based on the demand of the restaurant. For example, during busy periods, such as weekends or holidays, these staff members may be required to work longer hours or additional shifts to accommodate the higher volume of customers. Conversely, during slower periods, their hours may be reduced or they may not be scheduled to work at all. This flexibility allows the restaurant to effectively manage its workforce based on the level of business activity.

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5.

Which of the following statements about fixed and variable labour IS TRUE?

A.

An unexpected increase in business volume will increase fixed labour expenses.
B.

Managers have more control over fixed labour expenses than variable cost expenses.
C.

A goal of food and beverage managers should be to eliminate all fixed labour expenses.
D.

Fixed labour expenses are costs associated with the minimum number of employees needed to operate a business.

Correct Answer
D. Fixed labour expenses are costs associated with the minimum number of employees needed to operate a business.

Explanation
Fixed labour expenses are costs associated with the minimum number of employees needed to operate a business. This means that regardless of the business volume, these expenses remain constant. An unexpected increase in business volume will not affect fixed labour expenses because they are not dependent on the level of activity. Managers have more control over variable cost expenses, as they can adjust the number of employees or hours worked based on the business volume. The goal of food and beverage managers should not be to eliminate all fixed labour expenses, as they are necessary for the basic operations of the business.

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6.

Which of the following positions in a F&B operation is least likely to have a work schedule that varies in relation to changes in business volume?

A.

Dishwasher
B.

Supervisor
C.

Cook
D.

Server

Correct Answer
B. Supervisor

Explanation
A supervisor in a F&B operation is least likely to have a work schedule that varies in relation to changes in business volume. This is because supervisors are responsible for overseeing the operations and managing the staff, rather than directly performing tasks that are affected by changes in business volume. Dishwashers, cooks, and servers are all frontline positions that directly interact with customers and their workload can vary depending on the number of customers and orders. However, supervisors typically have more fixed responsibilities and their schedules are less likely to be affected by changes in business volume.

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7.

Which of the following work schedule techniques is used to adequately staff a F&B operation during periods of uneven work flow?

A.

Compressed work schedules.
B.

Staggered work schedules.
C.

Expanded work schedules.
D.

Rotated work schedules.

Correct Answer
B. Staggered work schedules.

Explanation
Staggered work schedules are used to adequately staff a F&B operation during periods of uneven work flow. This technique involves scheduling employees to start and end their shifts at different times, allowing for coverage during peak and off-peak hours. By staggering the work schedules, the operation can ensure that there are enough staff members present during busy periods while also maintaining a balanced workload during slower times. This helps to optimize productivity and customer service while minimizing labor costs.

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8.

Standard labour cost percentages are calculated by:

A.

Multiplying standard labour hours by the average hourly rate.
B.

Dividing total revenue by the number of guest served.
C.

Multiplying # meals served by the guest check average
D.

Dividing the total labour cost projected by the staffing guide by the estimated total revenues.

Correct Answer
D. Dividing the total labour cost projected by the staffing guide by the estimated total revenues.

Explanation
The correct answer is dividing the total labour cost projected by the staffing guide by the estimated total revenues. This calculation allows for a more accurate determination of the labour cost percentage. By dividing the projected labour cost by the estimated revenues, it takes into account the specific needs and requirements of the business and provides a more realistic percentage. This method helps in budgeting and forecasting the labour cost as it considers the expected revenue and ensures that the labour cost is in line with the financial goals of the business.

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9.

At Sara & Sarah’s Good Times Café, the forecast for Thursday afternoon’s lunch period was 200 meals served. The manager used the staffing guide to schedule employees to work & ended the lunch shift with TLC’s of $425. If the actual lunch revenue amounted to $1,250 and the budgeted labour cost was 32%, how close to budget were the labour costs for Thursday’s lunch period.

A.

2% over budget
B.

2% under budget
C.

16% over budget
D.

16% under budget

Correct Answer
A. 2% over budget

Explanation
The budgeted labor cost for Thursday's lunch period was 32% of the actual lunch revenue, which is $1,250. Therefore, the budgeted labor cost would be 0.32 * $1,250 = $400. However, the actual labor cost for the lunch shift was $425. To determine how close the labor costs were to the budget, we need to calculate the difference between the actual labor cost and the budgeted labor cost. The difference is $425 - $400 = $25. To express this difference as a percentage of the budgeted labor cost, we divide the difference by the budgeted labor cost and multiply by 100. ($25 / $400) * 100 = 6.25%. Therefore, the labor costs for Thursday's lunch period were 6.25% over budget.

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10.

Actual hours worked by staff at the House of Excess Homework exceeded scheduled labour hours by an average of 15hrs a week. If the average hourly wage is $7 and the budgeted profit margin is 10%, how much additional revenue must be generated during the year to cover the unscheduled increase in labour costs?

A.

$5,460
B.

$8,320
C.

$54,600
D.

$83,200

Correct Answer
C. $54,600

Explanation
The additional revenue needed to cover the unscheduled increase in labor costs can be calculated by multiplying the average additional hours worked per week (15) by the number of weeks in a year (52) and then multiplying that by the average hourly wage ($7). This gives us $5,460. Therefore, the correct answer is $5,460.

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