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18 Cards in this Set
- Front
- Back
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What is the fundamental formula used in accounting?
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Assets= Liabilities + Equity
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indicators for volume and processes in programs
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Service records are those documents used to collect and track actual demand for eating occasions and individual menu items. The data derived from these records are referred to as volume indicators
-used to predict the volume of business per service unit for the upcoming fiscal year |
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Cost of goods sold
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Beginning Inventory + Goods Purchased - Ending inventory
-profitability |
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Profit
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Total sales income - cost of sales
-profitability |
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Net profit
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total sales income - all expenses
-profitablity |
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Food cost per patient per day
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Food cost/ number of patients served/number of days
-productivity |
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Total cost per patient
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Total expenses/number of patients served
-productivity |
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Total revenue
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Total amount of all sales coming in
-Productivity |
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Labor cost percent of total revenue
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Total department labor expenses + benefits and taxes + worker's compensation cost DIVIDED BY total revenue
-contributes the largest expense that foodservice revenue must cover -productivity |
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Budgeting process and planning
5 phases |
-All budgets have the intent to determine how much money or other resources is available and at what rate it is to be spent
1. Evaluation phase 2. Preparation or planning phase 3. Justification phase 4. Implementation or execution phase 5. Control phase |
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Evaluation phase
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Evaluation phase--Dissects an operation's past performance and identifies those factors that are likely to influence future activities
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Preparation or planning phase
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Preparation or planning phase--uses information from the evaluation phase to forecast and prepare the first draft of the budget
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Justification phase
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Justification phase--A time of review, revision, and final approval--this process involves persons in organizational administration, such as the CFO, who have the authority to allocate funds
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Implementation or execution phase
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-Translates the budge expenditures into the operation functions
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Control phase
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-Ongoing monitoring process to ensure that operations stay in line with budgeted predictions
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Zero based budgeting
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-Newly developed each fiscal year starting with a "blank piece of paper".
-This approach requires that the manager evaluate all activities each year and justify every request for funds. -Commonly used for capital requests such as equipment and renovation projects |
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Capital budgets
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-Long term plan prepared to estimate or predict the costs of capital outlays or expenditures and their financing
Ex: Equipment replacement, renovation projects, facility expansion |
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Where to get budget data from
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Budget figures are based on historical data from records of past performance. Categories of performance differ between commercial and non commercial operations
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