Explore tens of thousands of sets crafted by our community.
Food Costing Basics
20
Flashcards
0/20
Food Cost Percentage
The ratio of ingredient cost to income from sales, represented as a percentage.
Contribution Margin
The amount remaining from sales after variable costs are subtracted.
Cost of Goods Sold (COGS)
The total cost of all ingredients that were used to make the items sold to customers.
Recipe Costing
The process of determining the total cost to produce a recipe, including all ingredients and portions.
Prime Cost
The sum of labor costs and COGS, a key indicator of total variable costs.
Yield Percentage
The amount of product that is usable after preparation, expressed as a percentage of the original amount.
Food Cost Formula
A calculation to determine the cost of ingredients used in a dish or recipe:
Edible Portion Cost (EPC)
The cost of a food item after it has been processed and is ready to eat.
As Purchased Cost (APC)
The cost of the food before any trimming or waste is considered.
Sales Mix
The relative frequency or quantities in which different menu items are sold.
Break-even Point
The point at which total sales equal total costs, resulting in no profit or loss.
Inventory Turnover Rate
A measure of how quickly inventory is sold and replaced over a certain period.
Variance Analysis
The process of comparing actual costs to expected costs to find differences that need investigation.
Menu Engineering
The study of the profitability and popularity of menu items and how these two factors influence menu design.
Gross Profit
The profit a company makes after deducting the costs associated with making and selling its products.
Portion Control
The practice of regulating the amount of food served per dish, affecting cost and consistency.
Direct Labor Cost
The cost of labor directly involved in the production of food items.
Cross-Utilization
The practice of using the same ingredient in multiple menu items to reduce waste and costs.
Waste Percentage
The percentage of food purchased that is not sold to the customer, often due to spoilage or preparation loss.
Theoretical Food Cost
The food cost calculated by assuming no waste, theft, or inefficiency in the kitchen.
© Hypatia.Tech. 2024 All rights reserved.