Purchasing Vocabulary GLWPar ValuePar ValuePar Value

Perpetual Inventory

Inventory conducted through the use of handheld devices and a POS system that produces a comprehensive cost analysis.

Supplies

Items purchased by a restaurant to stock or furnish the business—usually food and beverages but can also be kitchen utensils, furniture, appliances, and so forth.

Cost Control

Keeping budgeted costs as close as possible to actual costs.

Cost of Goods Sold (COGS)

A formula to determine the cost of materials to produce the cuisine served at your restaurant.

Par Value

Amount of each item you want to have in stock at the beginning of meal preparation each day

Traditional Count

Counting items by sight and by hand (also known as periodic inventory).

Loss

Products, supplies, or even money that is not recoverable due to accident or theft.

Inventory Costs

The cost of inventory as it relates to your purchase prices for goods. Be sure that your computer system refl ects accurate purchase prices.

Plating/Pour

The per plate or per pour pricing you have on your menu.

Inventory

The practice of counting and recording stock items.