Formulas & Concepts

Question 1

Total Costs=

Answer 1

Fixed Costs + Variable Costs

Question 2

Fixed costs:

Answer 2

ARE NOT RELEVANT TO OUTPUT
rent, equipment, insurance, interests, property taxes, salaries, depreciation

Question 3

Variable costs:

Answer 3

varies with output
labor costs (hourly wages), utilities, production costs

Question 4

Break even formula 1

Answer 4

Fixed Costs / 1- (variable costs/sales)

Question 5

Break-even formula 2

Answer 5

Fixed costs /
(sales price per unit)-(variable cost per unit)

Question 6

1 FTE is equal to=

Answer 6

40 hrs /week
8 hrs/day

Question 7

An employee working 20hrs a week is =

Answer 7

0.5 FTE

Question 8

Cost of Food=

Answer 8

Opening inventory + purchases - closing inventory

Question 9

Cost per meal=

Answer 9

total cost/ number of meals

Question 10

Cost of goods sold=

Answer 10

opening inventory + (purchases = labor) - closing invenotry

Question 11

We use COGS to calculate

Answer 11

Gross profit

Question 12

?: profitability measure that shows how efficient a company manages labor and supplies in production

Answer 12

Gross profit

Question 13

Net income will _____ as COGS ____

Answer 13

decrease, increases

Question 14

Gross profit=

Answer 14

revenue - COGS

Question 15

A ____ COGS will lead to a _____ profit, and a ____ COGS will lead to a ____ Profit

Answer 15

higher COGS leads to lower profit
Lower COGS leads to higher profit

Question 16

Beginning inventory higher results in

Answer 16

Higher COGS

Question 17

Ending inventory higher results in

Answer 17

LOWER COGS

Question 18

Salvage value=

Answer 18

Monetary value of item at end of usable life

Question 19

Yearly depreciation=

Answer 19

cost of equipment- salvage value/ years of usable life

Question 20

?: amount of wt product was purchased at or received from vendor

Answer 20

As purchases quantity

Question 21

?: amount of wt/vol/cnt of product after we prepared it

Answer 21

Edible portion quantity

Question 22

Waste=

Answer 22

AP quantity - EP quantity

Question 23

Yield=

Answer 23

EP quantity/ AP quantity

Question 24

Quantity Triangle

Answer 24

EP q
AP Q. Yield

Question 25

?: amount paid for the as purchased amount

Answer 25

As purchased cost

Question 26

?: is the total AP divided by quantity purchased

Answer 26

As purchased cost per unit

Question 27

As purchased cost per unit =

Answer 27

Total AP cost/ AP quantity

Question 28

?: cost to the department of the portions served

Answer 28

Edible portion cost

Question 29

EP Cost=

Answer 29

Total AP cost/ Yield

Question 30

EP cost per unit=

Answer 30

AP cost per unit / Yield

Question 31

Cost Triangle

Answer 31

AP cost EP cost. Yield

Question 32

Selling price=

Answer 32

Cost to make per unit/ food cost (decimal)

Question 33

Food cost=

Answer 33

cost to maker per unit/ selling price

Question 34

Cost to make per unit=

Answer 34

selling price x food cost

Question 35

Mark up factor=

Answer 35

1 / food cost can also be 1/ food cost + labor cost

Question 36

Prime cost=

Answer 36

raw food cost ($) + labor cost ($)

Question 37

?: assessed by the number of units sold and isn't tied to profit

Answer 37

Popularity

Question 38

2 measures that can be used to asses the success of different menu items

Answer 38

Popularity index and profit contribution

Question 39

?: see how popularity plays into profitability

Answer 39

Percent profit contribution

Question 40

Popularity index=

Answer 40

units sold/ total units sold

Question 41

Unit price profit=

Answer 41

selling price- food cost

Question 42

Profit=

Answer 42

item profit x units sold

Question 43

Percent profit contribution=

Answer 43

unit item sold (selling price-food cost)/ total profit

Question 44

Food cost percentage=

Answer 44

food cost/selling price