Chapter 11 Flashcards: Profitability in a Restaurant

Front

Calculate menu sales price with a $3.00 cost and 25% food cost percentage.

Back

Menu sales price = $12.00

Front

A document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Back

Purchase order

Front

A document that tracks the quantity and value of stock on hand.

Back

Inventory record

Front

The minimum quantity of an item that must be kept in stock.

Back

Par level

Front

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss.

Back

Income statement

Front

A detailed projection of all estimated income and expenses based on forecasted revenue during a given period.

Back

Operating budget

Front

Pricing based on how much a guest is willing to pay rather than production cost.

Back

Perceived value pricing

Front

Costs that cannot be easily changed or influenced.

Back

Noncontrollable costs

Front

Rent expenses are a this type of cost.

Back

Noncontrollable cost

Front

Desired percentage of sales price that covers food cost.

Back

Food cost percentage