QUIZ April 6 Spring 2017, questions PDF

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Questions from BIZ CAFFEE CONCEPT QUIZ...

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1. What will demand in your coffee shop depend on ? . pricing, advertising, and quality of experience

2. BIZCAFE : When starting a business, the first step should be to: write a business One manager must always be on site from one hour before the shop opens until one for until the shop closes true What is used to monitor cash flow,

Checkbook

3. BIZCAFE: Cafe X has just opened and business is slow. Prices are in line with the competition, they have advertised in the local paper and there appears to be enough staff. What do you recommend they do? Increase advertising and promotion 4. Company X has monthly fixed costs $100,000 and a unit variable cost of $50. How many units do they have to sell at $100 to break even? - 2,000 5. What can help you anticipate payments such as rent, utilities, interest, and payroll taxes. Cash Budget Analysis 6. What shows the daily capacity, or the maximum number of cups you could have sold based on your equipment and staff; the actual number of cups sold; and the average price of the coffee sold (including promotions and different cup sizes) Daily Receipts Report What shows revenues and expenses on an accrual rather than cash basis, so items are expensed in the period they are used, rather than when they are purchased Income statement

7. BIZCAFE: Cafe X purchased a new espresso maker for $6,000 at the beginning of the month. If the equipment depreciates over five years, what is the first month's expense? - $100 8. BIZCAFE: A(n)____________ is a financial statement that provides a summary of revenue and expenses over a period of time. - income statement 9. BIZCAFE: Company Y thinks they can increase sales by lowering the price of their product. If they currently sell 1,000 units a month at $110, how many more units will they have to sell at $100 to get the same amount of revenue? - 100

10. BIZCAFE: A new boutique hotel has 96 rooms and needs to hire staff to clean the rooms. If a typical employee can clean a room in about half an hour, how many employees will they need each day to clean the hotel in a 8 hour shift? - 6 11. BIZCAFE: If a new full-time employee is paid $40,000 a year and taxes and insurance add 20% of wages to the cost, what is the total cost of the employee to the company? - $48,000 12. BIZCAFE: Firm X sold 100 units of their product last month at a price of $500. If it costs them $300 to produce each unit, what is their gross margin for the month? $200,000 13. BIZCAFE: Cafe X bought 20,000 cups for $1400 when they opened for business last month. At the end of the month they has 8,000 cups left. How much did the cups add to the cost of goods sold for the month (COGS)? - $840 14. BIZCAFE: Approximately how many medium cups of coffee will make up one pound of coffee beans? - 32 15. BIZCAFE: The high capacity espresso maker vs. the standard maker has the potential of increasing your cups served by what percent? 160% If advertising on the radio costs $40 per spot and you run 5 spots per day, your weekly cost for radio advertising will be: A. $40 B. $200 C. $1,400 D. $3,000

1) Approximately how many medium cups of coffee will one pound of coffee beans make? A. 12 B. 32 C. 56 D. None of these 2) The high capacity espresso maker versus the standard maker has the potential of increasing your cups served by what percent? A. 30% B. 60%

C. 100% D. 160% 3) If your fixed costs are $1,000, your variable cost per unit is $1, and your selling price is $3 per unit, what is your breakeven number of units? A. 1,000 B. 500 C. 333 D. 2 1. BIZCAFE: (TRUE OR FALSE) If you do not hire servers they will automatically be hired. false 2. BIZCAFE: (TRUE OR FALSE) Deposits are made into your checking account one each week. False 3. BIZCAFE: Servers work approximately how many hours each week? 10 4. BIZCAFE: Which of the following is a 'startup' decision which you might not be able to change? furniture 5. BIZCAFE: If advertising on the radio costs $40/spot and you run 5 spots per day, your weekly cost for radio advertising will be: $1400 6. BIZCAFE: (TRUE OR FALSE) Offering 2 for one 1 coupons is effectively the same as offering customers have priced coffee TRUE 7. BIZCAFE: (TRUE OR FALSE) Rent is $2,000 and due the 1st of each month. TRUE 8. BIZCAFE: Funds for starting up your business are coming from: a $25,000 loan

What shows your firm's assets, liabilities, and equity Balance Sheet What shows the changes in your cafe's cash position over the month. Cash Flow Statement What report provides information about the coffee and cups used in the past week. Weekly Purchases Report

What report provides the averages for manager and staff wages, average turnover

rate (which tells you about how often the staff at local businesses is quitting), the area's minimum wage, and the number of employees for the other coffee shops in the area The Local Labor

What shows customer satisfaction with your cafe, an important measure of your performance. The Customer Survey What option shows the menus for all your competitors so you may compare competitor prices, coffee quality, and cafe hours with your own. The Industry Menus Where can you view your competitors' logos, ads, cup design and menus once they have been designed. Industry Branding Your experience in BizCafe will have wide application for business management: 1. Make a good plan. 2. Coordinate your management, marketing, and operations decisions. 3. Analyze results. 4. Make adjustments. Assets = Liabilities + Owner's Equity True Gross Margin = Revenue - Cost of Goods Sold False Gross Profit = Revenue - Cost of Goods Sold Gross Margin = (Revenue - Cost of Goods sold) / Expense False Gross Margin = (Revenue - Cost of Goods sold) / Revenue Profit = Revenue - Expenses True Only recognizes a transaction when you receive or spend money Cash Basis Recognizes a transaction when money is earned, but not exchanged Accrual Basis

1. Human Resources Management The management of people 2. Income Statement

A report of a firm's overall results for a period. 3. Inventory The stock of materials on hand at a business. 4. Job Description What a job entails, task and skills that are expected of an employee. 5. Management Hiring setting wages, etc. Managing of people, products, materials, etc. 6. Manufacturing Capacity The maximum amount that can be produced. 7. Materials Management Managing the materials in a business 8. Operations, The areas of manufacturing, quality control, purchasing, and materials management. 9. Organic Grown, using fertilizers or pesticides that are strictly of animal or vegetable origin. No drugs or hormones added. 10. Place, Refers to distribution, how products get to the store so that it is convenient for consumers. 11. Price, How much is paid for a product. 12. Product, Things we buy to satisfy our wants and needs. Item, service, or intellectual property. 13. Product development process Process by which a business takes products from ideas to products that are sold. 14. Promotion Involves all activities that companies use to communicate with consumers. Advertising. 15. Purchasing Ordering supplies or other materials. 16. Quality Control The process of ensuring that products meet expectations. 17. Receipts Revenue or money coming into a business. 18. Recruitment Discovering employees and drawing them to your business to work. 19. Revenues

Source of income, 20. Stakeholders Investors in your company; Jane Valdez 21. Value Benefits of a product and the cost of it. Functionality and emotional benefits.

Accounting - The way in which a business keeps track of and provides important information about its financial state; it fulfills its state, local, and national reporting obligations Accrual Accounting System - An accounting system wherein money in the form of revenues and expresses is counted when it is used, not necessarily when payment is made or received. A sale is recognized at the time of the sale, even if payment come later. Ambiance - The mood, character, quality, tone, and atmosphere of an environment Balance sheet - A snapshot of your organization at a particular point in time, containing the current balance in your asset, liabilities and shareholder equity accounts. Breakeven analysis - A way to calculate either the price necessary to charge at a particular level of sales or the number of units necessary to sell at a particular to cover normal operating costs (fixed costs) Capacity - The estimation of how many cups of coffee your shop could have handled serving a given day Cash- based Accounting system - In this system, money that is recieved is counted or recognized as income or revenue at the time it is deposited. Money that is spent is counted as an expense when it is spent. Checkbook - This represents your cash-based accounting system. It is a record of all receipts and disbursements for the current week. Compensation - Something given or received as an equivalent for services or debt. Competition - Nearby businesses of a similar nature producing a similar product, which may attract customers that would otherwise support your business.

Cost of goods - How much it costs to make the product, or create the service that is being sold. Customers - Someone who purchases a company's product or service Customer Analysis Report - An evaluation of who the customers are and what they are looking for in regards to a particular product Customer Satisfaction - The extent to which a business is fulfilling the needs and desires of its customers Disbursements - Payments or expenses costing the business money Distribution - Where a product or service is purchased and everything that leads up to, and helps achieve this action Depreciation - A decrease or loss in value, as because of age, wear, or market conditions. For accounting purposes, there are different methods and time periods by which the value of an asset worth $1,000 might be depreciated over 5 years using "straight-line" depreciation. In this situation, each year $200 of the asset's value would be depreciated Expenditures - All of the expenses of a company; what was actually spent in a fiscal period Expenses - Costs and charges that you must pay Forecasting - Predictions of spending or costs based on calculations in advance

Ambiance The mood, character, quality, tone, and atmosphere of an environment. balance sheet A snapshot of your organization at a particular point in time, containing the current balance in your asset, liabilities and shareholder equity accounts. break even analysis A way to calculate either the price you need to charge at a particular level of sales—or, conversely, the number of units you

need to sell at a particular price—to cover fixed costs. Capacity the estimation of how many cups of coffee your shop can handle - or could have handled - serving on a given day based on your equipment and staff cash-based accounting system In this system money that is received is counted or recognized as income or revenue at the time it is deposited. Money that is spent is counted as an expense when it is spent checkbook This represents your cash-based accounting system. It is a record of all receipts and disbursements for the current week. Compensation something given or received as an equivalent for services or debt Competition Nearby businesses of a similar nature producing a similar product, which may attract customers that would otherwise support your business. cost of goods how much it costs to make the product, or create the service that is being sold Customers someone who purchases the product or service customer analysis report an evaluation of who the customers are and what they are looking for in regard to a particular product customer satisfaction the extent to which a business is fulfilling the needs and desires of its customer Depreciation A decrease or loss in value because of age, wear, or market conditions. For accounting purposes, there are different methods by and time periods over which the value of an asset is depreciated. For example, an asset worth $1,000 might be depreciated over 5 years using "straight-line" depreciation. In this situation, each year $200 of the asset's value would be Depreciated. Disbursements payments or expenses costing the business money Distribution Where a product or service is purchased and everything that leads up to, and helps achieve, this action. Expenditures All of the expenses of a company; what was actually spent in a fiscal period. Expenses costs and charges you must pay

fixed costs cost that remain unchanged with volume sold Forecasting predictions of spending or costs based on calculations in advance human resources management The management of people, which includes: job analysis, recruitment and selection, compensation and benefits, training, and employee motivation and morale income statement A report of a firm's overall results for a period, including a breakdown of major expenditures and a calculated value of the net income. Inventory The stock and materials on hand at a business, including raw materials, finished goods, etc. Inventory would be listed as an asset on the balance sheet of the company. job description A written description of what a job entails, including what tasks and skills are expected of an employee. Management In BizCafe, management often refers specifically to the aspect of managing people—such as hiring, setting wages, etc. However, more generally, management often refers to the managing of people, products, materials, and any other number of items. manufacturing capacity The maximum amount that can be produced or manufactured in a particular period of time. materials management Managing the materials in a business, from raw materials to the finished product. Organic Grown using fertilizers and pesticides that are strictly of animal or vegetable origin, thereby creating a product without the use of drugs, hormones, or synthetic chemicals operations

Daily Capacity: the number of coffee cups your your cafe could have served based on the available equipment, servers, and productivity

What will demand in your coffee shop depend on 1. pricing 2. advertising

3. quality of experience Local Labour: What report provides the averages for manager and staff wages, average turnover rate (which tells you about how often the staff at local businesses is quitting), the area's minimum wage, and the number of employees for the other coffee shops in the area. What shows customer satisfaction with your cafe, an important measure of your performance. : Customer survey...