FSN 202 Lecture 13: Chapter 13
28 Nov 2016
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Document Summary
Financial report of net income or profit for the accounting period. Sales or revenues: cash or funds allocated to the operation. Inventory @ start + purchases - inventory at the end = cost of good. Gross profit: sales - cost of goods sold. Provide information for analyzing the effectiveness of operations. Tools for comparison and analysis standards of comparison compare performance with budget, past data, industry standards trend analysis monitor ratios over time to see trends ratio analysis. Guide to day to day operation, sales, expenses, and profits. Plan for capital expenditures (>) - large equipment purchases, renovations. Detailed estimate of cash receipts during budget period, synchronize cash resources. Price menu items to cover cost of food, labor, operating costs, profit. Needs to create a perception of value in the customer (target market) What the customer believes the menu is worth. Factor-pricing method rces with timing of expenditures acto. Markup is the difference between cost and selling price.
