HTM 2030 Chapter Notes - Chapter 1: Variable Cost

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

Document Summary

Expense to a foodservice establishment for goods or services when the goods are consumed or the serves are rendered. Cost of an item can be expressed through weight, volume, or total dollar value. Fixed costs unaffected by changes in sales volume. Little direct relationship to business volume because they do not change significantly when the number of sales increases/decreases. Example: lease stipulates set dollar amount every month = fixed cost. Costs of professional services (legal and accounting) Changes in fixed costs normally related to short term changes in business volume and sometimes tied indirectly to long term changes in business volume. Directly related to business volume (business volume increases, variable costs increase) Payroll costs (salaries and wages, employee benefits) = labour costs. Cost of labour can be increased/decrease in short term by changing scheduling. Costs on a statement of income are all total costs. Costs of goods sold and labour incurred: food, beverages, payroll.