HTM 2030 Chapter 9: Daily Food Cost (Chapter 9)

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

Document Summary

I(cid:374) s(cid:373)aller operatio(cid:374)s, there is (cid:374)o re(cid:272)ei(cid:448)i(cid:374)g clerk"s daily report, so i(cid:374)(cid:448)oi(cid:272)es (cid:373)ay (cid:271)e used for calculating costs: this type of adjust(cid:373)e(cid:374)t is a(cid:272)(cid:272)urate, (cid:271)ut s(cid:373)all (cid:271)usi(cid:374)esses do(cid:374)"t go through this trou(cid:271)le. Instead, they wait for a week to accumulate and average the food costs. Less timely, less accurate, but may be effective if sales pattern is fairly consistent. After determining food cost, determine food cost %: food cost/food sales x 100 = food cost % Directs can also be issued a day or two before use, causing inflated costs on so(cid:373)e days (cid:449)he(cid:374) produ(cid:272)ts are(cid:374)"t used: to overcome this, operations calculate food cost percent to date. Cumulative food cost percent for a period. Calculates the food cost percent on the 4th day, based on the food sales and food costs for the last 4 days. Categories on a simple daily cumulative cost report. Adjustment: added to cost, subtracted from cost. Total cost: today and to date.