Term | Definition |
Controllable cost | A cost that a manager can directly control |
Controls | A series of coordinated actions the can help keep financial results within an acceptable target range |
Corrective action | Steps taken to address the problem |
Cost structure | The proportion or percentage of expense items to sales |
Cover | 1 menu serve to a customer |
Fixed cost | A cost that remains the same regardless of sales volume |
Line item review | The checking of every item on the budget against actual figure and nothing the difference or variance |
Loss | A situation that occurs when an operation's expenses are greater than its sales |
Non-controllable cost | A cost over which a manager has lil to no control |
Operation standard | The measures established for making comparisons and judgment about the degree of excellence in operations |
Prime cost | An operation's total food cost, beverage cost, and labor for specific time period, usually a week or a month |
Profit | The dollar amount that remaining after all expense are paid |
Quality standards | A standard that sets the degree of excellence of raw material, finished products, and production standards for employees |
Quantity standard | A standard that refers to weight , count, or volume measure, such as potion sizes for menu foods and beverages, and employ production standards such as one cook per 50 covers |
Sales | The dollar amount the establishment has taken in for food and beverages |
Semi variable cost | A cost that increase and decreases as sales increases and decreases, but not in direct proportion |
Variable cost | A cost that increases and decreases in direct proportion |
Variance | The difference between actual result and targeted or budgeted results |