M2 Flashcards
A process used by managers to direct, regulate, and restrain the actions of people so that the established goals of an enterprise may be achieved.
• Financial success
• Operating profitability
CONTROL
The process whereby a manager attempts to regulate costs and guard against excessive costs.
• It is an ongoing process and involves every step in the chain of purchasing, receiving, storing, issuing, and preparing food and beverages for sale, as well as training and scheduling the personnel involved.
COST CONTROL
is intended to carry out operations at reasonable cost without sacrificing quality of service and production
COST CONTROL
often entails reduction of cost a the expense of quality
COST REDUCTION
Additional steps must be taken to ensure that all sales result in appropriate income to the business
SALES CONTROL
may be brought about by human factor as well as machine or tool
INEFFICIENCY
when materials are not utilized to the optimum.
WASTAGE
Although cost control is critically important to the profitable operation of any business, cost control alone will not ensure profitability.
SALES CONTROL
FLOW OF COST CONTROL
- Forecasting, budgeting & standards setting
- Distributing responsibilities and defining accountabilities for results
- Menu Planning
- Ordering & Purchasing
- Receiving Stocks
- Storage and Inventory
- Requisition and Issuance
- Production and Service
- Audit and Recording of
Transactions - Corrective Measures
• take personal charge of directing and supervising the control procedures in every phase of operations.
• delegate some or all of the work to subordinates
MANAGERS
Subordinates
• food controller
• beverage controller
• assistant manager
• supervisor
8 Control Techniques
- Establishing standards
2.Establishing procedures - Training
4.Setting examples
5.Observing and correcting employee actions - Requiring records and reports
7.Disciplining employees - Preparing and following budgets
are defined as rules or measures established for making comparisons and judgments.
STANDARDS
used to define the degree of excellence of raw materials, finished products, and, by extension, work.
Establishing quality standards is a grading process.
QUALITY STANDARDS
Defined as measures of weight, count, or volume, are used to make comparisons and judgments.
Food, beverage and labor
QUANTITY STANDARDS
Defined as the cost of goods or services identified, approved, and accepted by
management. Simultaneously both realistic and an ideal.
STANDARD COST
are the methods employed to prepare products or perform jobs.
PROCEDURES
are those that have been established as the correct methods, routines, and techniques for day-to-day operations.
STANDARD PROCEDURES
A process by which managers teach employees how work is to be done, given the standards and standard procedures established.
TRAINING
is defined as action taken to admonish, chastise, or reprimand an employee for work performance or personal behavior incompatible with established standards.
called for only if corrective action has failed.
DISCIPLINE
is defined as a financial plan and may be described as a realistic expression of management’s goals and objectives expressed in financial terms.
BUDGET
are established so that appropriate levels of funds can be made available to generate a particular level of sales.
ADVERTISING BUDGETS
forecast of sales activity and an estimate of costs that will be incurred in the process of generating sales
OPERATING BUDGET
financial records
Changes in cost and sales, wages, salaries and taxes Weather condition
HISTORICAL INFORMATION
