M7: Monitoring Food and Beverage Product Costs Flashcards
(24 cards)
When the amounts of an operation’s individual food and beverage costs are combined they are referred to as the operation’s total
COST OF SALES
is the peso value of all food on
hand at the beginning of an accounting period. It is determined by completing a physical inventory;
BEGINNING INVENTORY
are the sum cost of all food bought during the accounting period.
PURCHASES
is the sum of the beginning inventory added to the purchases made during a specific accounting period.
Food available for sale
refers to the dollar value of all food
on hand at the end of the accounting period.
ENDING INVENTORY
is the actual peso value of all food used due to its sale, spoilage, waste, or theft.
Cost of food consumed
is a labor-related, not food- related, cost therefore, the value of this benefit, if provided, is subtracted from the cost of food consumed and added to the cost of labor to more accurately reflect an operation’s true cost of food sold
Employee meal cost
is the actual amount of all food expenses incurred by the operation minus the cost of employee meals.
Cost of food sold, or cost of goods sold
Food Cost Percentage Formula
Cost of Food sold / Food sales = Food cost
is the peso amount of all beverage and beverage-related products sold, as well
as the costs of all beverages that were given away, wasted, or stolen.
Cost of beverage sold
This refers to the weight or count of a product as it is delivered to the foodservice operator.
AS PURCHASED (AP)
refers to the weight of a product after it has been cleaned, trimmed, cooked, and portioned.
Edible portion (EP)
is a procedure used for computing actual EP costs on an AP product that sustains weight or volume loss during preparation.
YIELD TEST
the percentage of product lost due to
cooking, trimming, portioning, or cleaning.
WASTE %
is the percentage of product remaining after cooking, trimming, portioning, or cleaning
YIELD %
is the portion cost of the item after cooking, trimming, portioning, or cleaning.
Edible portion cost (EP cost)
Compares how well a manger is doing with how well he or she should be doing.
Operational Efficiency
is defined as that cost of goods sold figure that should be achievable given the product sales mix of a particular operation.
Attainable product cost
are those individuals who pose as anonymous customers but, during their
unannounced visits, they observe workers carefully and later report to management any unusual or inappropriate behavior by bartenders or service staff.
Mystery shoppers (spotters)
is defined as the series of guest purchasing decisions that result in a specific food or beverage cost percentage
SALES MIX
Advanced technology programs available to help monitor food and beverage production efforts and costs
include those that can help:
TECHNOLOGY TOOLS
1. Perform nutrition-related analysis of menu items, including: a) Recipe nutrient analysis
b) Diet analysis
c) FDA (Food and Drug Administration) food labels
d) Diabetic exchange
e) Weight management components
- Calculate total recipe costs and per portion costs.
- Compute product yield and product waste percentages.
- Compute actual versus ideal costs based on product issues.
- Estimate and compute daily food cost.
managers must determine the amount of beverages used and the amount of beverage sales achieved.
beverage cost percentage
Maintain product usage records by:
a) Vendor
b) Product
c) Food category
d) Individual menu item
e) Ingredient
Conduct “make versus buy” calculations on convenience items to optimize employee productivity
and minimize costs.
TECHNOLOGY TOOLS
