Hello here😉 Today we in chapter 2 have learn about the determining food and beverages standards.
What is cost and material cost?
• Cost is to expense to a food service establishment for goods and services when the goods are consumed or service are rendered.
• Material Cost is the cost of purchase all costs incurred in getting raw material to the restaurants.
FORMULA:
OPENING STOCK:
+ cost of purchase
- closing stock
- cost of staff meals
= material cost
• Labour Cost
- the cost of labour that can be traced directly to the manufactured goods.
• Overhead Costs
Indirect Materials
- Materials used to support the production process
Indirect Labor
- Wages paid to employees who are not directly involved in production work
Cost Related to the Productions
- Costs related to the production facility
• Fixed Costs
- Unaffected by changes in sales volume
• Semi-Fixed Costs
- Contain a fixed and variable cost that not indirect proportion to sales volume.
• Variable Costs
- Clearly related to the business volume.
Elements of Costs
1. Controllable Cost
- costs that can be changed in the short term.
2. Non Controllable Cost
- Costs that are usually fixed cost and mangers do not have the ability to change it.
The Relationship Between Costs and Sales
√ Cost/Sales = Cost%
√ Cost/Cost % = Sales
√ Sales x Cost % = Cost
Standard Purchase Specifications:
1. Quality
2. Size
3. Weight
4. Count factor desired for a particular item.
• Overhead Costs
Indirect Materials
- Materials used to support the production process
Indirect Labor
- Wages paid to employees who are not directly involved in production work
Cost Related to the Productions
- Costs related to the production facility
• Fixed Costs
- Unaffected by changes in sales volume
• Semi-Fixed Costs
- Contain a fixed and variable cost that not indirect proportion to sales volume.
• Variable Costs
- Clearly related to the business volume.
Elements of Costs
1. Controllable Cost
- costs that can be changed in the short term.
2. Non Controllable Cost
- Costs that are usually fixed cost and mangers do not have the ability to change it.
The Relationship Between Costs and Sales
√ Cost/Sales = Cost%
√ Cost/Cost % = Sales
√ Sales x Cost % = Cost
Standard Purchase Specifications:
1. Quality
2. Size
3. Weight
4. Count factor desired for a particular item.
√ QUANTITY
Number of portion X Portion size (as a decimal) Yield percentage
√ NUMBER OF PORTION
Quantity X Yield percentage Portion size
√ PORTION SIZE
√ PORTION SIZE
Quantity X Yield percentage
Number of portion
Number of portion
√ YIELD PERCENTAGE
Number of portion X Portion size
uantity (original weight)
Standard Portion Size
• Weight
• Volume
• Count
uantity (original weight)
Standard Portion Size
• Weight
• Volume
• Count
CONCLUSION
What I get from this chapter 2 is that I can learn how to find answers according to the given formula.
THANK YOU👯
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