Htm 2030 Midterm 1 Flashcards
What are the biggest challenges for foodservice operators?
Labour Costs
3 areas for the income statement
- Controlling earnings
- Controlling food and beverage expenses
- Controlling labour expenses
Controllable costs
Any costs that can be changed in the short-term of operations
Uncontrollable costs
Costs that cannot normally be changed in the short-term run of operations
2 types of planning purposes
- Historical costs
- Planned costs
Historical costs
records of past operational results; valuable for planning
Planned costs
International goals for what might happen in the future; forecast prime costs
Prime costs
The costs of goods sold and labour incurred in a period of time
Cost % =
Cost $ / Sales $
4 control techniques
- Establish standards and procedures
- Train personnel
- Monitor performance and compare actual outcomes against plans
- Take appropriate actions to correct for unwanted deviations
Static budget
A single budget prepared for one level of business actitivity
Flexible
Multiple budget prepared for various levels of business
To create a budget, you require two items:
- Historical financial records
- Anticipated changes in sales and costs
Sales (simple)=
Variable costs + Contribution Margin
Variable Rate =
Variable costs / Sales
Contribution Rate =
Contribution Margin / Sale or 1 - Variable Rate
Contribution Margin =
Fixed Costs + Profit
Sales % =
Variable Rate + Contribution Rate
Sales $ =
Variable Cost + Contribution Margin
Sales (complicated) =
(Fixed + Profit) / Contribution Rate
Periodic order method:
Triggered by time; orders are planned to be placed on a regular, recurring time pattern
Order Quantity =
Amount required for the upcoming period - Amount present + Desired Ending Inv
Perpetual inventory method:
Triggered by inventory levels; orders will only be placed once the inventory on hand is reduced to a predetermined level
Reorder point =
Normal usage + Safety factors
Reorder Quantity =
Par stock - Reorder point + Normal usage
Desired Ending Inventory =
Normal Usage + Safety Factors
Normal Usage =
Daily use x Delivery days
Order Amount (perishable) =
Par Stock - Inventory on hand
Par Stock is
how much stock they will need in stock
Bin Cards
Are a simple method to show how much inventory is demanded over time
Fresh Meat storage temp
1 - 2 C
Fresh Produce storage temp
1 - 3 C
Fresh Dairy storage temp
1 - 2 C
Fresh Fish storage temp
-1 - 1C
Frozen Food storage temp
-18 - -23 C
Dry goods/ Staple products storage temp
18 - 21 C
Direct goods received
Food charges immediately as costs when received
Stores good received
Food carried in inventory; only charged as costs when issued on demand
Issuing process has two parts:
- The physical movement of goods from storage to preparation areas
- Recording costs of food issued
Intraunit transfers
Between departments of the same operation
Interunit transfers
Between separate units within a chain
Yield % =
Edible portion / As purchased portion
The butcher test establishes:
A rational value for the primary portion of meat to be used
Cost Factor per Kg =
Cost per usable Kg / As purchased price per Kg
Cost Factor per portion =
Portion cost / As purchased price per Kg
The cooking loss test establishes
A rational value for the portion of meat after cooking has occurred
Standard Portion Cost =
Purchased price per unit / Number of portion per unit
