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Chapter1

Math4

TermDefinition
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
Created by: eaglelife0
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