HTM 2030 Chapter Notes - Chapter 8: Decimal Mark, Prope, Inventory Turnover

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

Document Summary

Control process review: establish standards and procedures for operations, train all individuals to follow standards and procedures, monitor performance and compare actual performance with established standards (focus in this chapter, take appropriate actions to correct deviations. Cost of food issued: opening inventory + purchases (directs & stores) = total available inventory, total available closing inventory = cost of food issued (monthly food cost, oi + p - ci = c. Average inventory = oi + ci / 2 = . Inventory turnover = cost of food sold / average inventory = 4. 0 (put in one decimal point) > inventory turnover of 4 means you empty and ll store room once a week (four weeks in a month) or 52 times in a year. > inventory turnover is relative number, may change or stay the same over time, number doesn"t give you anything real.