Module 1 Quiz: Financial Foundation & The Numbers That Matter

1.What is the target Prime Cost percentage for a world-class independent full-service restaurant? A. 45-50% B. 55-60% C. 65-70% D. 75-80%

2.What does RevPASH stand for? A. Revenue Per Available Seat Hour B. Return Per Average Sale Hour C. Revenue Per Annual Seat Hour D. Rate Per Available Service Hour

3.How often should you review your P&L statement? A. Monthly B. Quarterly C. Weekly D. Daily

4.What is the formula for Prime Cost? A. Food Cost + Labor Cost B. Food Cost + Beverage Cost + Labor Cost C. Total Revenue - Operating Expenses D. Fixed Costs + Variable Costs

5.What is the minimum frequency for calculating break-even analysis? A. Annually B. Quarterly C. Monthly D. After any significant cost change

6.Which of the following is NOT a component of prime cost? A. Food purchases B. Beverage purchases C. Rent D. Kitchen labor wages

7.What is the target food cost percentage for an independent full-service restaurant? A. 20-25% B. 28-35% C. 35-40% D. 40-45%

8.What tool is recommended for weekly invoice processing and recipe costing? A. Toast POS B. Resy C. MarginEdge D. OpenTable

9.What behavioral economics principle explains why owners avoid looking at their numbers? A. Loss Aversion B. Confirmation Bias C. Ostrich Effect D. Status Quo Bias

10.A restaurant does $35,000 in weekly revenue with $11,200 food cost, $3,800 beverage cost, and $11,500 labor cost. What is their prime cost percentage? A. 58.6% B. 62.0% C. 74.3% D. 45.2%