Recipe Costing And Quantification PDF

TH2306 RECIPE COSTING AND QUANTIFICATION Yield Analysis A yield corresponds to the weight, piece, or volume of food or ingredients after it has been processed or made ready for sale to customers. It means something has been subtracted from its original weight to get the ne...

TH2306 RECIPE COSTING AND QUANTIFICATION Yield Analysis A yield corresponds to the weight, piece, or volume of food or ingredients after it has been processed or made ready for sale to customers. It means something has been subtracted from its original weight to get the net usable product or edible portion (EP). A yield test is used to determine the amount of EP and the amount of trim or waste product (WP) of a particular food item. It is usually performed on raw products such as fruits and vegetables. The cooking loss test is performed for food items that need to be cooked before portioning, a similar method of breaking a product into EP and WP. There are natural losses in the process of preparing ingredients. Purchased ingredients must be cleaned, trimmed, peeled, boned, and cooked before selling. The following terms are commonly used in yield analysis (The Culinary Institute of America, n.d.): As Purchased Quantity (APQ) refers to the weight, volume, or count of the ingredient purchased from a vendor or supplier before any processing. The needed processing usually involves trimming the waste from the product and separating it from the usable part. Edible Portion Quantity (EPQ) refers to a product's weight, volume, or count after it has been thawed, cleaned, peeled, trimmed, boned, or cut and is ready for sale or use. Trim is the quantity, weight, volume, or count of the loss or waste. Mathematically speaking, trim is the difference between the APQ and EPQ. When added to the EPQ, the result is the APQ. Suppose a person buys a 70-pound bag of potatoes. The 70-pound bag of potatoes is the APQ. When the potatoes are peeled, they become 56 pounds, the EPQ. The 14-pound difference is the trim or waste. However, not all trim is a loss; if the trim is usable, it is not. For example, if the potato peels can be used in vegetable stock for soup, these would not be considered trim. Utilizing the trim will make a kitchen run more cost-effectively, although the value of the skins may be so small that it might not be worth allocating this cost to the ultimate recipe. Yield percentage (Y%) is the percent of the usable portion of a food item (see 05 Handout 2) for the approximate yield percentages of some food items, which are expressed as whole numbers). These are the three (3) major applications of yield percentage: o Computing the minimum amount of ingredients or supplies to order o Determining how much a recipe costs o Determining the maximum number of servings or portions the purchased amount will yield. Yields can be determined in two (2) different ways, depending on the type of food item being tested. First is the Convenience Food Yield Testing, also called the canned/bottled test. It is done on food items prepackaged into cans, bottles, and other containers like cherries, pineapples, and olives. This form of yield test may be used to check the net weight and drained weight claims made by canneries. The second is the Fresh Food Yield Test, done on food items purchased in an unaltered, fresh, or raw state. This test consists of weighing food items both before starting any preparation and after completing the final preparation such as raw food test to get the standard yield of highly perishable ingredients of fish and shellfish, vegetables, and fruits; butcher’s test to determine the standard yield of meat, poultry, and fish after thawing, trimming, and cutting; cooking loss test to determine the standard yield of meat, poultry, fish, and shellfish after applying any cooking method to determine shrinkage (loss after cooking). 05 Handout 1 *Property of STI  [email protected] Page 1 of 5  TH2306 Recipe Costing Recipe costing is a process or activity of determining the number of resources, in the form of money, needed to produce a specific amount of product or serving portions. It is also a significant planning and controlling tool in quantity and institutional food production. It facilitates the following activities (Samson & Borja, 2018). Budgeting By knowing the amount of money required to prepare a dish, an operation can anticipate its needed funds and plan for the dish. Recipe costing provides the basis for determining potential food cost, a necessary element in eventually determining the potential profit of operations. Control The cost obtained using recipe costing represents the potential cost incurred if production follows the set standards. A big difference between the cost as determined by recipe costing and the actual cost incurred can indicate that production may not be following the standard operating procedures (SOPs). Thus, recipe costing provides a means of comparing actual costs and expected costs. Determining the selling price Although there are many ways of determining the selling price, cost is still one of the primary pricing bases. It is important to determine the unit cost or cost per portion to set the price of a dish or its serving portion. Maintaining profitability Since costs are deductions from revenue, it decreases profit levels. The higher the food cost, the lower the ability to produce profit. The goal of production would be to try to minimize expenses to maximize profit. It can be done by ensuring that the actual cost of producing a recipe undergoes accurate costing. Prerequisites to Recipe Costing There are several things needed before doing the recipe costing. These prerequisites are essential to ensure that the recipe is accurately costed. Standardized Recipe Only a recipe that has been tried and tested can be costed. Costing a recipe that has not been standardized yet is a waste of resources. The costs determined through recipe costing may not represent the actual cost of preparation since, in reality, there would be a lot of adjustments with the ingredients to be used if the recipe had not been standardized. Price List It shows the current market price or quotations for the ingredients needed in the recipes. The current market list, grocery list, and purchase orders are sources for this list. It is important to remember that the price list must be regularly updated as prices fluctuate in the market. Ideally, the food service establishment should use a computerized inventory management system to easily generate or update its price list since departments or units (e.g., production, purchasing, and accounting) are all connected. Steps in Costing Out a Recipe A recipe cost worksheet is a tool used to record the cost of a certain recipe. It is a worksheet that aims to organize and simplify costing. Depending on the foodservice establishment, this cost sheet may differ in form and content (Refer to 05 Handout 2 for a sample recipe cost worksheet). The following are the steps in recipe costing: 1. Prepare the recipe cost worksheet. Transfer the recipe file number, recipe name, yield and portion size, ingredients, and ingredient quantity from the standardized recipe card or template. Write all EP quantities since standardized recipes usually indicate cleaned, peeled, and cut ingredients; thus, they mean EP weight. Indicate the date when the recipe was costed as well. 05 Handout 1 *Property of STI  [email protected] Page 2 of 5  TH2306 2. Indicate the market price from the price list. Get the market price of the individual ingredients based on the updated price list. Write these in the Purchase Price column. 3. Compute the unit price of ingredients. Convert the total purchase price into single unit prices. Ensure that the unit price has been converted to the same unit of measurement as the ingredient quantity. Write the results in the Unit Cost column. Round off answers to the nearest thousandths. For example, if a recipe requires 45 mL of oil, its unit price can be calculated by dividing the purchase price of ₱154.75 per liter by 1000 mL. Hence, its unit price is ₱0.155 per mL. 4. Compute for the Individual Ingredient Cost. To compute this, also known as the Extension Cost, multiply the quantity by the Unit Cost. Then, round off to the nearest hundredths. 5. Compute for the Total Ingredient Cost. To get the total cost, add all the extension costs. 6. Compute for the Q Factor. Some foodservice operations use the Questionable Ingredient Factor (Q Factor) method in calculating immeasurable ingredients. It is assigned to cover the costs of ingredients, which are impossible or time-consuming to calculate. It can be utilized in the following cases: ✓ When pinches, dashes, or “to taste” types of measurements are needed ✓ If an ingredient requires a very small quantity ✓ To cover excessive costs caused by incorrect measurement ✓ To account for the cost of condiments used. Q Factor is calculated based on the percentage of the total ingredient cost of measurable ingredients. Normally, chefs or managers choose a percentage between 1% and 15% of the total ingredient cost. The decision to use this method depends solely on the chef or manager who costs the recipe. The Q Factor Amount is calculated by multiplying the Total Ingredient Cost by the chosen Q Factor %. (Note: The percentage should be converted to decimal before multiplying.) Total Ingredient Cost x Q Factor % = Q Factor Amount Example: ₱56.80 x 5% = 2.84 7. Compute the Recipe Cost. It refers to the total cost of measurable and immeasurable ingredients. It is an educated estimate of how much it costs for the foodservice operation to prepare a standard recipe. If a foodservice establishment uses the Q Factor method in calculating immeasurable ingredients, the recipe cost is calculated using the following formula: Total Ingredient Cost + Q Factor Amount = Recipe Cost Example: ₱56.80 + 2.84 = ₱59.64 However, if the immeasurable ingredients are exactly priced individually, the recipe cost corresponds to the Total Ingredient Cost. If that is the case, proceed to the next step, calculating the standard portion cost. 8. Compute for the Standard Portion Cost. Since restaurants do not usually sell menu items by the recipe as a whole, it is necessary to compute the standard portion cost of a standard recipe. The standard portion is the consistent quantity of product provided to each person each time it is served. Divide the total cost of preparation by the yield or number of portions to get the Standard Portion Cost or Cost Per Serving. Round off the standard portion cost to the nearest hundredths. Recipe Cost ÷ Yield = Standard Portion Cost Example: ₱59.64 ÷ 2 = ₱29.82 05 Handout 1 *Property of STI  [email protected] Page 3 of 5  TH2306 Recipe Quantification Recipe quantification is the process of adjusting the yields of a given recipe by decreasing or increasing it to meet the production requirements of a foodservice operation. There are ways to quantify a recipe; one commonly used method is the factor method. This method uses a conversion factor, a multiplier that quantifies all the ingredients in the recipe (Palacio & Theis, 2021): 1. Compute the conversion factor using this formula: 𝐷𝑒𝑠𝑖𝑟𝑒𝑑 (𝑛𝑒𝑤) 𝑦𝑖𝑒𝑙𝑑 𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 𝑭𝒂𝒄𝒕𝒐𝒓 = 𝑂𝑙𝑑 𝑦𝑖𝑒𝑙𝑑 If needed, and for easier conversion, convert the ingredients to a common unit of measurement first. Otherwise, skip this part. 2. Multiply the old yield with the conversion factor. Conversion factor × Old yield = Desired (new) yield Example: Quantify the given recipe to 18 servings. Beef Tenderloin Tips and Mushrooms à la Crème Yield/Servings: 8 Portion size: 8 oz. Ingredients: Butter 2 oz. Prepared mustard 2t Onion 4 oz. Brown sauce 1 ½ pt. Flour 1T Heavy cream 1 cup Mushrooms ½ lb. Salt to taste Beef tenderloin 2 ½ lb. Pepper to taste White wine ½ cup 1) Desired (new) yield ÷ Old yield = Conversion factor 18 ÷ 8 = 2.25 2) Multiply each ingredient by the conversion factor. Ingredient Old Yield Conversion Factor New Yield Butter 2 oz. 2.25 4.5 oz. Onion 4 oz. 2.25 9 oz. Flour 1T 2.25 2.25 T Mushrooms ½ lb. 2.25 1.125 lbs. Beef tenderloin 2 ½ lb. 2.25 5.625 lbs. White wine ½ cup 2.25 1.125 cups Prepared mustard 2t 2.25 4.5 t Brown sauce 1 ½ pt. 2.25 3.375 pt. Heavy cream 1 cup 2.25 2.25 cups Examples: Butter 2.25 x 2 = 4.5 Onion 2.25 x 4 = 9 05 Handout 1 *Property of STI  [email protected] Page 4 of 5  TH2306 References: Association of Southeast Asian Nations (ASEAN). (2013). Toolbox for Food Production. Plan and manage menu- based catering: Trainee manual. Victoria, AUS: William Angliss Institute of TAFE. Clackamas Career & Technical Education Consortium (C-TEC) (2019). Edible portion vs. as purchased. Retrieved from National Research Center University of Louisville via https://www.clackamascareers.com/media/uploads/MathinCTE-Culinary-AP_EP_and_Yield.pdf on 19 March 2019. McVety, P., Ware, B., & Ware, C. L. (2009). Fundamentals of menu planning (3rd Ed.). Hoboken. NJ: John Wiley & Sons, Inc. Payne-Palacio, J. & Theis, M. (2021). Foodservice management: Principles and practices (13th Ed.). Pearson Samson, J. J. F., & Borja, M. A. (2018). Food production management. Mindshapers The Culinary Institute of America (n.d.). Educator lesson plan: Kitchen calculations. Retrieved 15 November 2023 from https://www.ciachef.edu/uploadedFiles/Pages/Admissions_and_Financial_Aid/Educators/Educational_ Materials/Technique_of_the_Quarter/techniques-calculations.pdf 05 Handout 1 *Property of STI  [email protected] Page 5 of 5