HTM 2030 Study Guide - Final Guide: Contribution Margin, Distilled Beverage, Happy Hour

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

Document Summary

A portion of it should change with short-term changes in business. Principles of food, beverage, and labor cost controls. Cost: expense to a food service establishment for goods or service when goods are consumed or the services are rendered. Fixed costs: normally unaffected by changes in sales volume. Directly variable costs: directly linked to volume of business, so that every increase or decrease in volume brings a corresponding increase or decrease in cost. Semi-variable costs: has both a fixed element and a variable element eg. labor costs-includes salary,wages, and employee benefits volume and another portion should not. Controllable costs :can be changed in short term. Non-controllable costs : cannot normally be changed in the short term. Unit costs: may be food or beverage portions, or units of work such as in the hourly rate of an employee unit in profability. Total costs: normally used for broader purposes including the determination of the relationship between total costs and total sales.