Quiz 3 Cost Control Flashcards
The amount of dollars you take in is called
Revenue / Sales
Costs required to operate the business
Expenses
Dollar amount left over after all expenses have been paid
Profit
Profit formula
Revenue-Expenses = Profit
4 main costs that a food service manager must concern themselves with
- Food costs
- Beverage costs
- Labor costs
- Overhead / Operational costs
are the costs
associated with producing the
menu items.
Food costs
- usually the largest of second largest expense
- include drinks other than alcoholic!! like soda/fountain drinks
Costs of all alcoholic drinks (beer, wine, liquor) and anything needed to make them (such as mixers, lemons, cherries, juices)
Beverage costs
include the cost of all
employees necessary to run the
business, including taxes and
benefits.
Labor Costs
- usually secondary to food costs
include all
expenses that are neither food,
beverage nor labor, such as
utilities, rent, linen, paper
supplies, repair etc
Overhead costs/ Operational costs
Costs that do not change with change in sales
Fixed costs
example- rent
Costs that are directly related to business volume
Variable Costs
Costs that have both fixed and variable elements
semi-variable costs
Costs that can be changed in the short term
Controllable Costs
Costs that can not be changed in the short term
Noncontrollable Costs
may be food or beverage portions or units of work per dollar basis
Unit costs
