HTM 2030 Lecture Notes - Lecture 8: Mega Man Star Force, Types Of Restaurant, Inventory Turnover

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 2030
• Professor: Alison Crerar

Document Summary

The information about food cost applies to any product. Determines the actual value of items in inventory. Several errors can occur when you count inventory, may appear as a control problem but it is really an accounting program. If a delivery is received and put in the storeroom, it will be counted as part of the closing inventory. However, if the invoice is not processed so it is added to the amount purchased, then the purchases amount for the period will be too low. Invoice is processed but the goods are not counted as part of closing inventory. Many other errors can occur during the counting or valuing of inventory. Track the cost of each case, need a way of tracking what each case cost. One way is to write the cost of the case on each case when it arrives. Gives you an accurate value of inventory and the cost of sales but you need very detailed records.