Ch. 3 level 2
Operating Budget
a financial plan for a specific period of time
Moving Average Technique
a forecasting technique that averages together sales information for two or three recent and similar periods to predict future sales
Food Production Chart
a form that shows how much product should be produced by the kitchen during a given meal period
Operational Standards
specifications of an operation with regard to products. If an item must be redone to meet standards, this costs money, not only in terms of wasted product that increases food cost, but also in term of productivity that increases labor cost
4. Total food cost is calculated by what formula?
(Opening inventory + Purchases = Total food available) - Closing inventory
9. At what temperature should foodservice freezer units be held?
0˚F
7. What form shows how much product should be produced by the kitchen during a given meal period?
Food production chart
8. Which method calculates a menu price by multiplying raw food costs by a predetermined fraction?
Straight markup
Standardized Recipe
a recipe followed every time that menu item is prepared
Cost Control
a business's efforts to manage how much it spends
Variance
a change that as occurred, reflecting a difference between actual performance and the standards against which performance is being measured
Crew Schedule
a chart that shows employees' names and the days and times they are to work
Profit-and-Loss Report
a compilation of sales and cot information for a specific period of time
Variable Cost
a cost that changes, depending on sales
Semivariable Cost
a cost with some components that change depending on sales and some that do not
Invoice
a document from a supplier that lists such details as items purchased, date of order, purchaser, and sales price
Sales History
a record of the number of portions of every item sold on a menu
Production Sheet
a list of all menu items that are going to be prepared for a given date, based on forecasts
Last In, First Out
a method of calculating closing inventory by multiplying the number of units of each item by the earliest price paid for the item
Latest Purchase Price
a method of calculating closing inventory by multiplying the number of units of each item by the most recent price paid for the item
Actual Purchase Price
a method of calculating closing inventory by multiplying the number of units of each item by the price actually paid for each unit
Weighted Average Purchase Price
a method of calculating closing inventory by multiplying the number of units of each item in the opening inventory and later purchases by the price actually paid for each item, adding all the prices together, and dividing by the total number of items
Edible-Portion Method
a method used to determine the cost of ingredients in a standardized recipe after trimming and removing waste, so that only the usable portion of the item is reflected
As-Purchased Method
a method used to determine the cost of ingredients in a standardized recipe at the purchase price, before any time or waste is taken into account
Full-Line Supplier
a one-stop shop that provides equipment, food, and supplies to the restaurant and foodservice industry
Forecast
a prediction of sales levels or costs that will occur during a specific time period
Recipe Cost Card
a table of ingredient costs for each item in the standardized recipe
Master Schedule
a template showing the number of people needed in each position to run the restaurant or foodservice operation for a given time period
Point-of-Sale (POS) System
computer software that helps managers track sales, employee activity, and other information, as well as facilitating guest orders
2. Food and labor can be designated as what cost?
controllable
Physical Inventory
counting and recording the number of each item in the dry-storage area
1. Revenue is defined as income
from sales before expenses are subtracted
Historical Data
past information about a restaurant and its operations, used to predict future needs
6. A tool used to calculate standard portion cost for a menu item is called a
recipe cost card
5. Food Cost ÷_____________ = Food cost percentage
sales
Food Cost
the actual dollar value of the food used by an operation during a certain period
Business Volume
the amount of sales an operation is doing for a given time period
Inventory
the dollar value of a food product in storage; it can be expressed in terms of units, values, or both
Standard Portion Cost
the exact amount that one serving of a food item should cost when prepared according to its standardized recipe
Revenue
the income from sales before expenses, or costs, are subtracted
3. Taking sales information for two or three recent and similar periods and averaging it together is a forecasting method called
the moving average technique
Employee Turnover
the number of employees hired to fill one position in a year's time
Opening Inventory
the physical inventory at the beginning of a given period
Closing Inventory
the physical inventory at the end of a given period
Contribution Margin
the portion of dollars that a particular menu item contributes to overall profits
Cost
the price an operation pays out in the purchasing and preparation of its products or the providing of its service
Recipe Yield
the process of determining the number of portions that a recipe produces
Total Food Cost Percentage
the relationship between sales and the cost of food used to achieve those sales
Price Point
the selling price of a menu item
Quality Standards
the specifications of the operation with regard to products and services
Labor Cost
the total cost associated with staff members employed by an operation
Beverage Cost
the total cost of beverages purchased by an operation
Food Cost
the total cost of food purchased by an operation
Average Sales Per Customer
the total dollar sales divided by the total number of customers, used to he;p calculate revenue forecasts
Pilfering
theft of food, usually in reference to staff members
Average Check Pricing Method
this pricing method divides the operation's total revenue by the number of seats, average seat turnover, and number of days open each year; this yields the average check amount, which is then used with the approximate food cost amount to determine menu prices
Straight Markup Pricing Method
this pricing method multiplies raw food cost by a predetermined fraction to determine the dollar amount to be added to each food item
Contribution Margin Pricing Method
this pricing method uses the portion costs for each item sold to determine how much money the average customer contributes to overhead and profit; this dollar amount is then added to each menu item
10. A document that a receiving employee uses to verify a delivery is called a
vendor invoice
