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chapter 6

TermDefinition
actual price method a method that uses a products cost that is listed on the closing inventory sheet
averaged price method a method that uses a composite of all prices paid for an item during the inventory period to evaluate the inventory
credit memo a document used to adjust information about quantities or costs recorded on a delivery invoice; it specifies items to be deducted from the amount owed and explains the reason why the credit is being granted
daily food cost an estimate of cost based on requisitions transfers, and sales. to determine daily food cost, the daily requisitions for that unit are totaled. transfers from that unit to another unit are subtracted and transfers into the unit are added to the requisitio
directs items that are charged to food cost as they are recieved by the operation, on the assumption that these perishable items will be used immediatly
extending multiplying the number of units of each item by the items unit price
first in, first out (FIFO) a method commonly used to ensure that refrigerated, frozen, and dry products are properly rotated during storage
inventory an itemized list of goods and products, their on-hand quantity, and their dollar value
inventory breakdown a method of categorizing the operations food and supplies
inventory turnover a measure of how quickly and item in storage is used
issuing taking food or beverage products from storage
key drop delivery delivery of food items and goods after hours when the establishment is closed for business
last in, first out (LIFO) an inventory method used when an establishment intends to use the most recently delivered product before using any part of that same product previously on hand
latest price method a method that uses the latest price paid for a product to value an inventory; this is that most widely used pricing method in the restaurant and foodservice industry
padding inflating the inventory for the purpose of reducing the food cost
perpetual inventory a theoretical count based on goods recieved and issued, which exists on paper only
physical inventory an acctual physical count and valuation of all items on hand
reduced oxygen packaged (ROP) bulk food food contained in a package in which oxygen has been removed , oxygen has been displaced with another gas or combination of gasses , or somethang else has been done to reduce the oxygen content to a level below that which is normaly found in air
requisitions a form lisitng the items and quantities needed from the storeroom
short weight the amount a shipment actually weighs subtracted from the weight given on its label
slack-out seafood a type of fraud in which frozen seafood is thawed to appear fresh
stores items that are considered part of the inventory untill issued for used in an establishment and are nt included in food cost until they are issued
temperature danger zone food kept out at a temp of 41 degree to 135 degrees for a total of more than four hours is unsafe and must e discarded
time temp control Policies and procedures that monitor the amount of time and the ongoing temp of food products in the flow of food
transfer a form used to track items going from one foodservice unit to another
uniform commercial code (UCC) sets of guidlines established to harmonize business transactions law across states
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