HTM 2030 Lecture Notes - Lecture 1: Fixed Cost, Variable Cost, Historical Cost

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 2030
• Professor: William Murray

Document Summary

Htm*2030 principles of food, beverage, and labor cost controls. Cost: expense to a food service establishment for goods or service when goods are consumed or the services are rendered. Fixed costs: normally unaffected by changes in sales volume. Directly variable costs: directly linked to volume of business, so that every increase or decrease in volume brings a corresponding increase or decrease in cost. Semi-variable costs: has both a fixed element and a variable element eg. labor costs-includes salary, wages, and employee benefits -a portion of it should change with short-term changes in business volume and another portion should not. Controllable costs :can be changed in short term -usually include variable costs. Non-controllable costs : cannot normally be changed in the short term -usually include fixed costs. Costs: may be food or beverage portions, or s of work such as in the hourly rate of an employee -important for purposes of establishing menu prices an determining unit in probability.