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Cost Control

Better Essays

Chapter 18
Test Bank

True/False Questions

1. Indirect compensation includes free meals, life insurance, and discounts on accommodations. (T) * It is a contract between employee and employer * Aim to attract and keep loyal employees * Includes: paid vacation; health benefits; life insurance; free meals; free living accommodation; use of recreational facilities operated by the employer; discounts on accommodations; use of a company vehicle; reimbursement for outside classes; child care * Most common forms of indirect compensation: paid vacation
-two weeks per year
-4 percent of an employee’s current annual earnings
- roughly 6 percent of annual earnings
2. Deferred compensation includes travel expenses paid one …show more content…

5. Job analysis is the first step in preparing job descriptions. (T)

6. Work schedules for fixed cost personnel are normally based on anticipated sales volume. (F)

7. Job descriptions typically include the skills, education, past experience, and other requirements needed for employees to perform a job. (T)

8. A job description lists the duties and responsibilities assigned to a job, but does not include instructions for performing the assigned tasks. (F)
A list of the specific duties assigned to the job. These will be as detailed as possible, to the point that well-written job descriptions can be used as step-by-step instructions for doing the specific work required of those holding these job.

9. A simple method for developing an hourly analysis of business volume is to count the number of customers in the dining room each hour.

10. The manpower requirements for servers in a given restaurant are typically determined by intuitive judgements made by the manager. (T)

Multiple Choice Questions

B1. During slow periods in a restaurant, the number of fixed cost personnel is:
a. increased;
b. decreased;
c. unchanged.

C2. On an organizational chart, the solid lines connecting jobs are
a. lines of communication;
b. lines of authority;
c. lines of direction.
An unbroken line (solid lines) from one position to another indicates that the person below reports to and take direction from the person immediately

The dotted lines show

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