Questions and Answers
What is inventory?
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?
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What is a recipe cost card?
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What are preportioned items?
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What is physical inventory?
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What does the latest purchase date method determine?
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What is the actual purchase price method?
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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.
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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.