Food Costs Chapter 9 Flashcards

Questions and Answers

What is inventory?

The number of each item in a restaurant.

The food product in storage expressed in terms of units. (correct)

The value of the food sold.

The relationship between sales and food costs.

What is opening inventory?

The physical inventory at the beginning of a given period.

What is closing inventory?

The inventory at the end of a given period.

What is total food cost percentage?

The relationship between sales and the cost of the food that went into those sales. Signup and view all the answers

What is a recipe cost card?

A table of ingredient costs for each item in a standardized recipe. Signup and view all the answers

What are preportioned items?

Menu ingredients that have been accurately portioned prior to service. Signup and view all the answers

What is physical inventory?

The number of each item in the restaurant. Signup and view all the answers

What does the latest purchase date method determine?

The value of closing inventory by multiplying units by the most recent price paid. Signup and view all the answers

What is the actual purchase price method?

Determining closing inventory value by multiplying units by the price actually paid for each unit. Signup and view all the answers

Study Notes

Inventory Management Concepts

Inventory refers to food products stored, measured in units, dollar values, or both, crucial for tracking available resources.
Opening Inventory is the physical count of inventory at the start of a reporting period, establishing a baseline for tracking changes.
Closing Inventory is the remaining stock at the end of a reporting period, used to assess consumption and costs.

Food Cost Analysis

Total Food Cost Percentage indicates the ratio of food costs to food sales, calculated using the formula: Total food cost / food sales. This percentage helps compare performance against standards or historical data.
Standard food cost percentages are targets set by management, reflecting expected performance within the industry.

Recipe and Portion Control

Recipe Cost Card is a detailed record showing ingredient costs for each menu item, essential for calculating and controlling portion costs effectively.
Every multi-ingredient menu item should have an associated recipe cost card to ensure accurate pricing.

Portion Management

Preportioned Items are ingredients measured before service, ensuring consistency in portion sizes and aiding in inventory control.

Inventory Measurement Techniques

Physical Inventory involves counting the actual quantity of stock on hand in a restaurant, critical for managing resources.
Latest Purchase Date method evaluates closing inventory value by multiplying units by the most recent price, offering a quick inventory valuation method.
Actual Purchase Price method provides a more precise inventory valuation by considering the actual price paid for each unit, though it requires meticulous tracking of price changes over time.

Description

Test your knowledge on food cost terminology with these flashcards from Chapter 9. Learn key concepts such as inventory, opening and closing inventory, and food cost percentage. Perfect for anyone studying food management or hospitality.