ACC 342 Lecture Notes - Lecture 13: Inventory Turnover, Day Labor, Menu Cost
Finacial management can be found where in the systems model
input (operational), control (contracts/budget), output (financial accountability), Memory
(records/financial records)
what is an activity ratio
relationship between 2 items that may be expressed several ways
examples of a ratio
common ratio (variable x as to y), percentage, turnover (employment, tables), per unit basis (dollars per
unit, meals per labor hour, dollars per day)
inventory turnover
cost of goods sold/average inventory value
how do we calculate cost of goods sold
beginning inventory + purchasing - ending inventory OR Whitehair's formula: Beg. Inventory - Ending
Inven) + Purchases
beg inventory $5500 inventory, ending inventory $3800 inventory, purchase $4,000 --> determine COGS
((5500 - $3800) + 4,000)/((5500 + 3800)/2) ==> $5700/$4650 ==> 1.22 times
operating ratios
designed to examine success of operation in generating revenues and in controlling expenses. are we
bringing revenue in
food cost report
provides up-to-the min info about sales, food costs, and number of people served. Expresses the
relationship between the food cost and income from sales in terms of percent. We find this percentage
figure by dividing the cost of food used today or another period by the income for the day or period.
formula for food cost percent
cost of food sold/income
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Expresses the relationship between the food cost and income from sales in terms of percent. We find this percentage figure by dividing the cost of food used today or another period by the income for the day or period. formula for food cost percent cost of food sold/income cost of food sold formula (beg. Inventory - ending inventory) + purchases income equals what sales food cost percent example. Today"s sales , cost of food today = . 530/1280 ==> 41. 4% (remember whitehair doesn"t agree with standards across the board) comparison of food cost percent in commercial ops vs. non-commercial opers commercial operations: lower % of sales revenue spent on food. Non-commercial operations: higher % of sales revenue spent on food. Factors that affect control the menu. menu costing and establishing the right selling price. Portion size and serving waste. labor cost report offers what provides up-to the min info about sales, labor costs, and number of people serviced.
