When a prime-supplier system is in place, there is an increased need for maintaining a formal issuing system for food service items.

When a prime-supplier system is in place, there is an increased need for maintaining a formal issuing system for food service items.

• A. A formal issuing system for food service items.
• B. Higher supplier credit terms.
• C. No special issuing system is needed.
• D. A larger kitchen staff.

Answer: (A)

Control of inventory and accountability is crucial when using a prime-supplier arrangement because all foods come from one source, so you need reliable records to track what is issued to the kitchen. A formal issuing system provides documented authorization and timing for every item taken from storage, helping prevent theft or overuse, support accurate cost tracking, and ensure inventory levels reflect actual usage. This makes reconciliation with invoices easier and keeps the food cost within budget. The other options don’t directly address the need for traceability and control; higher supplier credit terms can vary independently, no special issuing system leaves room for miscounts, and adding staff doesn’t resolve issues of loss or mismanagement.

Control of inventory and accountability is crucial when using a prime-supplier arrangement because all foods come from one source, so you need reliable records to track what is issued to the kitchen. A formal issuing system provides documented authorization and timing for every item taken from storage, helping prevent theft or overuse, support accurate cost tracking, and ensure inventory levels reflect actual usage. This makes reconciliation with invoices easier and keeps the food cost within budget. The other options don’t directly address the need for traceability and control; higher supplier credit terms can vary independently, no special issuing system leaves room for miscounts, and adding staff doesn’t resolve issues of loss or mismanagement.