Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
20 Cards in this Set
- Front
- Back
|
Contribution Margin |
=Revenue - Variable Costs Represents the earnings available to pay fixed costs |
|
|
Standard Cost |
is the expected cost benchmark for comparison VARIANCE= Standard Cost - Actual Cost |
|
|
Variable Costs |
Vary according to sales volume Remains constant as sales increase VARIABLE COSTS: Cost of food sold, some labor costs |
|
|
Mixed Costs |
=Fixed costs + [(variable costs)(unit sales)] aka semi-mixed, semi-variable |
|
|
Fixed Costs |
Decreases as sales volume increases |
|
|
Cost of Goods Sold |
BGN INV + Purchases - END INV - Adjustments +Trans. to kit |
|
|
Food Cost Percentage |
Food cost / Food sales x 100 |
|
|
To calculate variance you must calculate: |
1) Cost of Goods Sold 2) Food Cost Percentage COGS / Food Sales x 100 3) Variance Standard cost - actual cost (in dollars or percentages) |
|
|
Variance Percentage |
Standard cost / sales |
|
|
1 lb = ___ oz 1 qt = ___ oz 1 gal=___ oz |
16 32 128 |
|
|
To do product analysis step one, you must calculate total usage by: |
Opening inv. + Purchases - Ending inv. |
|
|
To do product analysis step two, you must convert portions available for sale by: |
(Total Usage)(Portion Units) / (Portion Size) |
|
|
To do product analysis step three, you must calculate variance by: |
Subtracting the Actual Cost from the Standard Cost SC - AC = VAR |
|
|
Total Cost= |
(# sold) (Item Cost) |
|
|
Total Revenue= |
(# sold) (Selling Price) |
|
|
Standard Percentage= |
Total cost -------------------- Total Revenue |
|
|
Gross Profit= |
Total revenue - total cost |
|
|
Inventory Turnover |
Cost of Sales -------------------- Avg. Inventory |
|
|
Low turnover means __________ stock High turnover means _______ stock level |
excessive low |
|
|
Gross Profit Theory provides the 2 Ps of each item |
Popularity and Profitability |
