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Cost Control
Question | Answer |
---|---|
What is the first-in first-out system used for? | To allow older inventory item be used first before newer inventory items |
What is a par level? | Predetermined, regular purchase point amount |
What is a waste log? | a report that list any item that had to discarded and the reason why |
What is a major cause of food cost in a food service operation? | Not adhering to standardized recipes |
What is Price-Value Relationship? | The connection between selling price and its worth to the customer |
AP stands for? | As Purchased |
EP stands for? | Editable Portion |
What is the As Purchase (AP) method | Method used to cost an ingredient at the purchase price prior to any trim or waste being taken into account |
What is the Edible Portion (EP) cost? | Method used to cost an ingredient after it has been trimmed and waster has been removed so that only the usable portion of the item is reflected |
How does food cost percentage method works? | To determined menu prices based on the standard food cost percentage |
Formula for Selling Price | food cost divided by food cost percentage |
Formula for Food Cost Percentage | food cost divided by selling price |
Formula for Cost of Goods | selling price times food cost percentage |
What is the Yield test? | Test used to measure the amount of shrinkage that occurs during trimming and cutting products that are not cooked, such as produce |
When do you do a Perpetual Inventory Control? | At the close of each inventory period |
What do you do during a Perpetual Inventory Control? | Take a physical count and valuation of all inventory on hand |