HTM 2030 Lecture : HTM2030 CH.1.docx
Document Summary
Classify costs into the following categories; fixed, variable, and semi-variable, controllable non-controllable. Sales: the amount of dollars you take in. Expenses: the costs of items required to operate a business. Labour costs; cost of all employees, including taxes and benefits. Overhead; utilities, rent ect. food cost/ food sales= food cost % beverage cost/beverage sales= beverage cost % labour costs/total sales= labour cost% Variable cost: changes in relation to sales if they increase/decrease. Mixed or semi variable: both fixed and variable elements. Controllable costs: can be changed in the short term. Non-controllable: cannot normally be changed in short term. Prime cost: sum of food costs, beverage cost, and labour cost. Historical cost: business records, books of account, and other similar records. Planned costs: projections of what costs will be. Includes total sales, by server, or by seat. Other terms include sales price, average sale, average cheque and average sales per person.