Unit 1 Part 2 Flashcards
(31 cards)
What are the three methodologies of f and b cost control?
Planning Phase
Operational Phase
Post Operational Phase
____ policy defines the market to be catered for and develops a marketing mix to satisfy the needs and
wants of the target customers.
Marketing Policy
Steps in Planning Phase
1.Identify target market and segments.
2. Develop 4 Ps: product, price, place, promotion.
3. Design promotion mix for communication
4. Build corporate image by meeting customer expectations.
____ policy defines the main objective of
operating food and beverage faculties and the methods by
which such objectives are to be achieved.
The Catering Policy
Catering Policy outlines three profiles. What are those?
- Outlet profile - Types of outlet, operating status, hours,
décor, ambience, layout plan, covers, service, staffing etc. - Clientele Profile - Age group, sex, food habits, average spending, frequency of visit, etc.
- Menu Profile - Types of menu, meals, cuisine etc
_____phase deals with
establishing standards and standard
procedures to exercise control in
relation to the five main stages of
the control cycle.
Operational Phase
What are the Five (5) Main Stages of the Control Cycle?
- Purchasing
- Receiving
- Storing and Issuing
- Preparing
- Selling
What phase have these contents?
▪ Food and beverage cost reporting / Identifying
variances
▪ Measurement of Performance / Performance
evaluation
▪ Corrective Action/Implementing corrective
actions.
Post Operational Phase
essential for ensuring the efficient operation of a
hospitality establishment. It involves overseeing all
aspects of staffing, including recruitment, training,
scheduling, performance management, and employee engagement.
Personal Management
__________ is based on how profits
respond to prices, costs, and volume.
Cost-volume-profit ratio
_______ describes the relationship between sales volumes in units to
other expenses such as fixed expenses, variable
expenses, total expenses and total sales.
Cost-volume-profit graph
_____ is the revenue obtained from the
exchange of products or services for a value.
Sales
Two types of sales
Monetary and Non - monetary
a reduction in the value of an asset for the purpose of securing benefit or gain
Or in FB business
the price to the hotel or restaurant of goods &
services when the goods are consumed or the services rendered
Cost
- substance from which the product or dish or drink
is made. - comprise semi-processed ingredients such as
sauces or pickles which are used in the food industry.
Material
The cost incurred for commodities. Used in preparation of food ex. meat, fish, oils,
herbs & spices. It is the cost which is an integral
part of the finished product which is served to
the guest.
Direct Material or Indirect Material?
Direct Material
Is the cost which is ancillary to the business and
is not an integral part of the product but is
necessary for preparation.
Ex. fuel cost such as gas or electricity used for
preparing food & cleaning supplies.
Direct Material or Indirect Material?
Indirect Material
compensation given to employees for completion of a particular job for which they have been assigned & to convert the raw materials to the
finished products to be served to the guests.
Labour
Costs that remain constant regardless of the level of
production or sales.
Fixed Cost
Costs that vary in direct proportion to changes in
production or sales levels
Variable Cost
Costs that have both fixed and variable components
Semi-variable cost
Costs that can be directly traced to the production of
specific goods or services
Direct Cost
Costs that cannot be directly attributed to specific products or
services but are necessary for overall operations
Indirect Cost
These are the direct costs associated with the
production of food & beverages
Prime Cost
